Investors Mutual Limited’s (IML) investment philosophy is based on the premise that a company’s share price will reflect its underlying value over the long-term. We believe that markets are not fully efficient and there will be times that a company’s share price will not reflect what we believe to be that company’s true underlying value. Such situations provide our investment team with the opportunity to build long term portfolio positions in quality companies at attractive valuations.
Focusing on both quality and value, IML has an active, ‘bottom-up’ approach to identifying, researching and valuing companies. Our approach is systematic, disciplined and focuses on finding companies that meet our investment quality criteria and then determining an appropriate valuation for those companies.
We look for four clear quality characteristics in companies:
- competitive advantage;
- a history of consistent, recurring earnings;
- capable management;
- the ability to grow earnings and consequently their dividends over time
Additionally, from a valuation perspective it is important that such companies be trading at a reasonable price.