Investing Against the Tide

Anthony Bolton’s lessons from a life running money

Companies

• Start by evaluating the quality of the franchise
• Will it be here in ten years’ time and be more valuable?
• Is the company in control of its own destiny?
• Is the business model easy to understand?
• Does the business generate cash?
• Remember, mean reversion is one of the great truisms of capitalism
• Beware company guidance
• Use part of a company meeting to talk about other companies
• If you have any doubts about a company, follow the cash

What to look for in management

• Integrity and openness are most important
• If you have any questions on competency or trustworthiness, avoid the company
• Do they have a detailed knowledge of the business strategically, operationally and financially?
• Are the ...