
| Description | Process | Commentary |
Investment ProcessPurchase 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.If you would like to request additional information about Westwood, click here.