Description Process Commentary
 
International Equity
Investment Process

Purchase Discipline

Sanderson's investment process is comprised of three steps:

  • Screening of appropriate databases to identify a shortlist of potentially attractive stock ideas based on current value and future growth.
  • Fundamental and business analysis of these companies to ascertain whether they meet the required quality tests.  Key factors in appraising companies are:  Underlying industry growth and competitive position, reliability of profits, strong capitalization, and experienced and ethical management with a proven track record.
  • Using central, worst and best case scenarios, valuation of the companies’ future dividend streams in relation to the current market prices.

Sell Discipline

Sanderson will sell the stock of a company:

  • If the pre-determined fair valuation level is achieved.
  • If there is unanticipated change in fundamentals affecting quality appraisal.
  • If more attractive alternatives are available.
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