VALUE INVESTING
Philosophy
Silver Silks Capital’s investment process is based on the value investing philosophy. Founded by Benjamin Graham, and evolved by Warren Buffett. The essential concept behind value investing is to acquire a business for less than its intrinsic value. Financial markets provide abundant opportunities to invest into undervalued businesses for numerous reasons, largely attributed to investor psychology which swings cyclically similar to that of a pendulum. Find out more.
“It’s far better to buy a wonderful business at a fair price than a fair business at a
wonderful price.”
Performance
We benchmark our performance relative to the S&P 500 index which is historically the world’s best-performing index. This is due to the rationale that our investor’s alternative is always an S&P 500 index fund.
2019: SSC 31.5% vs S&P500 28.34%
2020: SSC 40.3% vs S&P500 7.63%
“To value a stock you must value the business.
All intelligent investing is value investing,
acquiring more than
what you are paying for. ”
COMPETITIVE ADVANTAGE
Investment Strategy
Silver Silk Capital focuses on investing in undervalued high-quality businesses that have a strong-durable competitive advantage allowing them to sustain a high-return on invested capital, with a capacity to re-invest excess free cash flow. Find out more.
1.
Highly Concentrated Portfolio Comprising of 10-15 Investments
2.
Invested for the long term with an expected average holding period for 5+ years
3.
Investing in businesses with an undervalued economic moat structurally embedded into the business model
4.
Focusing on long-term out performance as opposed to short-term performance.