Bristol invests like a business owner because business fundamentals ultimately drive equity values over the long term. We maintain a long-term focus and employ rigorous fundamental research to construct our portfolio of Corporate Athletes. Correctly identifying Corporate Athletes requires thorough research and sound judgment, which we believe is best executed in a team-based process.
The core tenets of our approach – fundamental research, long-term thinking, and team-based decision-making – have been consistently applied over eight decades and many market cycles.
The focus of our investment process is to uncover companies with durable competitive advantages that can sustainably grow earnings at above-average rates – what we call “Corporate Athletes.”
We approach investing as though we were purchasing the entirety of the business, by drilling into the basic building blocks of the company’s operating model, value chain, and culture. We ask: How does the company create value for customers and other stakeholders? What does this company do that its competitors would have difficulty emulating? Who are the key decision-makers, and are they aligned?
Our experience tells us that Corporate Athletes are rare, and only a select number are chosen for our portfolios.
We home in on the dynamics that will influence our companies and the industries in which they operate over the next five to 10 years. Stock prices are often jarred by transitory concerns and short-term expectations. Bristol’s long investment horizon allows us to look beyond the next quarter and maintain a focus on the business fundamentals that matter over the long term.
We believe our consensus decision-making process enables the best thinking and leads to better investment results. Investment decisions are made by consensus of the entire investment team rather than by one or two portfolio managers. Our approach empowers team members so that every voice is heard with candor and respect, no matter the tenure. The investment team has overlapping research coverage, facilitating the cross-pollination of ideas.