Growth Profitability Valuations
Growth from profitable companies with reasonable valuations
Our Focused Approach Since 1992
Profitability is the foundation for determining a businesses’ intrinsic value. Profitability is our research North Star. Specifically, Cash Flow Return on Invested Capital. As such, peer-leading profitability is a key element we look for when investing in companies. Sustained multi-cycle profitability is a rare attribute that considerably narrows down our investible universe.
As growth company investors, we expect our businesses to be able to deliver double-digit, annualized earnings growth over a multi-year timeframe. Through our “Invest as Business Owners” approach, we target prospective companies with reasonable valuations.
Investment Philosophy
Growth – Evaluate high quality companies with the prospect of double-digit growth over the company’s prospective business cycle. Our time frame is typically 3 – 5 years.
Profitability – Resulting from healthy balance sheets, earnings growth, and industry leading return on invested capital.
Valuation – Reasonable valuations provide a margin of safety. Patiently wait for opportunities to purchase great businesses at attractive prices.
Concentrated – Everything in the portfolio matters. Most positions overweight the benchmark.
Our Story
We were founded in 1988 with the goal of providing investors with a superior approach to managing investment portfolios. Over the years, our focused large-cap growth strategy combined with our “Invest as Business Owners” process has resulted in our long term success.
Why Wedgewood
We were founded in 1988 with the goal of providing investors with a superior approach to managing investment portfolios. Over the years, our focused large-cap growth strategy combined with our “Invest as Business Owners” process has resulted in our long term success.
Investment Process
We were founded in 1988 with the goal of providing investors with a superior approach to managing investment portfolios. Over the years, our focused large-cap growth strategy combined with our “Invest as Business Owners” process has resulted in our long term success.