The compounding power of long term ownership
In a world obsessed with speed, patience has become a profound form of rebellion. We believe that patience is an active, disciplined, and strategic choice. It is the deliberate decision to allow a powerful and immutable force to work on our behalf. That force is the power of compounding.
There is a deeply ingrained behavioral bias to equate action with progress. Our philosophy is built on the understanding that the most profitable action is often no action at all. Trading activity generates costs and taxes, while patient ownership generates wealth.
Compounding is the process where returns are themselves reinvested to generate additional earnings over time. To unleash its full potential, this cycle requires high quality, growing assets as fuel, and a long, uninterrupted runway of time to gather momentum.
When we invest, we are not renting a stock ticker for a few months. We are purchasing fractional ownership in a real, operating business. An owner thinks in terms of years and decades, focused on the company's long term strategy and its ability to innovate and adapt.
Patience is the ultimate expression of confidence in the quality of the businesses we have selected, confidence in the power of compounding, and confidence in the rigor of our own investment process. Time is the ally of the superior business and the patient investor.