http://www.investingthesis.com/interviews/investing-professionals/an-interview-with-portfolio-manager-jason-donville-of-donville-kent-asset-management/
"We consider Return on Equity (ROE) to be the key starting point for any company we look at because we believe the key value driver of any company is its ability to earn a return on equity that is substantially higher than its cost of equity. "
"We look at working capital management because we find that there are times when it is difficult to be objective about a company’s management. Working capital management (inventory days, accounts receivable management, etc) is like a form of DNA for a company – its their signature of how good they are as managers that they cant hide."
"We tend to hold highly concentrated positions but we also tend to buy stocks on the way up. We rarely if ever average down and we never buy a large position all at once. We want to see the upward movement in the stock validate that we are correct in assuming that the said company is undervalued."
All these invaluable nuggets of wisdoms! There are more in the full interview.
"We consider Return on Equity (ROE) to be the key starting point for any company we look at because we believe the key value driver of any company is its ability to earn a return on equity that is substantially higher than its cost of equity. "
"We look at working capital management because we find that there are times when it is difficult to be objective about a company’s management. Working capital management (inventory days, accounts receivable management, etc) is like a form of DNA for a company – its their signature of how good they are as managers that they cant hide."
"We tend to hold highly concentrated positions but we also tend to buy stocks on the way up. We rarely if ever average down and we never buy a large position all at once. We want to see the upward movement in the stock validate that we are correct in assuming that the said company is undervalued."
All these invaluable nuggets of wisdoms! There are more in the full interview.
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