Businesses we're proud to own.
We choose few — and hold them long.
Strategy.
Motte & Co has followed the same long-term investment strategy for over 25 years. It is founded on the belief that a short-term investment approach ultimately leads to suboptimal returns, and that investors are better served not by taking more risk, but by extending their investment time horizon. With a long-term focus, difficult decisions oftentimes become easier and more obvious.
Market short-termism creates opportunities to acquire long-term stakes in exceptional public companies at prices that can enhance returns while reducing the uncertainties inherent in any investment.
We believe this inefficiency has only grown, driven by the rise of short-term, algorithmic, and macro-focused investing, as well as the expanding influence of passive investors holding broad, diversified portfolios.
Investment approach.
Motte & Co invests in listed North American and European companies that have the following characteristics:
– a simple and solid business model
– a dominant position in a global industry
– a high and sustainable return on capital that is greater than its cost
– many opportunities to redeploy the cash generated by the business
– a management that knows how to take advantage of these opportunities
– a strong balance sheet.
We invest in such companies only when the growth of their future cash flow is underestimated by the market. We remain shareholders as long as their intrinsic value increases.
Investment process.
Before committing capital, Motte & Co develops a deep, research-driven understanding of each prospective portfolio company’s long term fundamentals, including its competitive positioning relative to key peers.
Our investment and ownership approach is anchored in a disciplined, proprietary research process that integrates detailed operational, commercial, and financial analysis.
Our investment universe consists of 70 companies, many of which are monitored for years before any investment is made.
