“Rainforest investment managers have repeatedly generated investment returns for themselves and their investors. That’s why I have entrusted them with the task of building my nest egg for myself and my family, while I continue working at my job and vocation.”
Investing Triple = Aims + Process + Temperament >>> Investing Success
Investing Triple = Aims + Process + Temperament >>> Investing Success
Investing Triple
Long-term and value focused, we sum up our investment approach as the “Investing Triple”. This is based on our belief and experience over the years that the 3 essential factors to successful investing are having the right Aims, Process and Temperament.
Aims
Our investing aims comprise an optimum balance of 3 equally important objectives:
Maximising Return, while Minimising Risk, in a Sustainable manner.
Returns are the reason for investing but one should not chase returns without considering the risks involved and whether the returns are repeatable.
“The Aims must be borne firmly in mind at all times when doing investment. Otherwise, one may get burnt by the stock market repeatedly and eventually end up seeing stock investing as incomprehensible or even as gambling.”
Process
The investment process must be highly methodical and well-thought through to generate superior, sustainable (repeatable) returns. We are disciplined about looking for quality businesses run by sound management, with competitive advantages to withstand the vagaries of the markets and the economy. Furthermore, no matter how good a company is, it cannot be worth an infinite price, so we will only go in when we think the price is right and when it gives us a good chance of getting attractive returns.
Temperament
Temperament may often be overlooked but yet is actually of great importance in successful investing. The kind of investment we do requires a certain dourness, in terms of patience, steadiness and an unemotional nature that will not be unduly affected by the ups and downs of the market, that is able to see times of crises as buying opportunities and is able to perceive, when certain stock prices are going up, that it might not be appropriate to join the party. Whichever way a person's temperament tends towards, it is something most of us are born with. We believe we have the right temperament for the job.
Watch a Video!
A lighthearted introduction to equity investment using the Investing Triple approach. A 10-min video we made in-house.