Investment Strategy
Our strategy is to buy stocks of very high-quality businesses when they are offered at a fair price, and to hold them for a long time. These are businesses with strong earning fundamentals, high return on capital, and growth prospects in both the current economic environment and the foreseeable future.
Naturally, some businesses will flourish for a very long time, while others will prove to be a cash drain. We do not try to predict when an economic paralysis will occur, but we will always be prepared for one.
Portfolio Management
We construct portfolios primarily using U.S. and foreign stocks and secondarily using bonds and real estate investment trusts. In the absence of potential opportunities, we hold assets in money market instruments and cash. Our strategic and tactical portfolio asset allocation and trading strategies are based on economic and business analysis.
Risk Management
Investment is an opportunistic business, and it inherently involves risk. It is our goal to not risk the loss of capital, even if we must pass up a tantalizing opportunity.
We rely on solid research and reliable market data to periodically review portfolios to match economic and market dynamics. Although our approach is to hold investments for a long time, at times it is imperative to make opportunistic adjustments to the portfolio. Occasionally, we use options as a hedge to mitigate risk.
Technology
Artha is a digital-first investment company. We aim to avoid paper and manual processes. Technology, particularly artificial intelligence, is at the center of our operations, from research and document analysis to operational tasks. Cloud applications and data governance processes protect our data and ensure strict observation of privacy rights.
Integrity
We strive to invest in companies that uphold trust and integrity; similarly, we hold ourselves to the highest standard of integrity in all our dealings. We offer our clients transparency into our thinking and actions. Our principle can be summed up in the words of former Wyoming Senator Alan Simpson: "If you have integrity, nothing else matters. If you don't have integrity, nothing else matters."