PROCESS

At Henry Armstrong, we discover investment opportunities by adhering to the following process:

Filter

We screen a large universe of companies according to a consistent set of growth and quality measures.

Research

Henry Armstrong digs deep into the fundamentals of each company:

What are its strengths and weaknesses?
What is its competitive situation?
What stage of its business life is it in?

Early: unstable – risky – competitive – possible hypergrowth
Middle: stable – rapid growth – dominance in its market
Late: maturing – slowing down – becoming vulnerable

Does it have a defensible franchise?
Is it exposed to commodity pricing pressures?
Will its franchise weaken, or strengthen, over the next 5-10 years?

Select

We select the very best, assessing risk carefully.

Monitor and Act

Henry Armstrong makes a handful of new additions per year to our reference list, and deletes any company whose fundamentals have become weak or whose stock price has risen too high to provide our desired margin of safety. We review portfolios regularly to act on any changes.

This process is governed at all times by our principles.