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Investment Approach
The investment objective is to fortify capital against long term risks of inflation and currency depreciation.
Did you know?
At an inflation rate of 8% per annum, money’s purchasing power is halved every nine years. After twenty years the purchasing power of an initial ZAR1 million will depreciate to a mere R188,000.
When a new investment portfolio is constructed, we like to use the metaphor of a house that is planned and built in phases. The opposite is when an investor makes a once-off investment in a unit trust and accepts the generic product as is.
VEGA Asset Management’s investment philosophy centres around buying growth at a reasonable price.
We aim to invest in companies that have the following qualities:
- Strong cash flow generation ; sound dividend growth
- Solid balance sheet ; low gearing
- Management has entrepreneurial mindset ; proven track-record
- High returns on invested capital
- Quality earnings growth
- Attractive valuation relative to prospects, market and peers
No investment decisions are made without thorough and objective research.
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