At Henry Armstrong, we discover investment opportunities by adhering to the following process:
We screen a large universe of companies according to a consistent set of growth and quality measures.
Henry Armstrong digs deep into the fundamentals of each company:
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?
We select the companies we believe to be 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.