The single best way to generate strong returns is to identify stocks that are trading a long way from their fair price. This not only generates better results, but also creates a margin of safety that helps us hit our 80% success rate benchmark. As our objective at Monash Investors is to generate significant absolute returns for our clients, we are not interested in stocks trading within 15% of their fair price, and look for much bigger opportunities. A key process in achieving our goal is through following our four-point checklist, whereby we look for: 1) Growth in key inputs such as revenue, sales or cash-flow; 2) Insight into how the market has misunderstood the stock; 3) Value opportunity due to mis-pricing; and 4) An event that provides a near-term catalyst. In this special Monash valuation white paper, we describe which traditional approaches we use, and give more detail on our four-point checklist. Access the report here: (VIEW LINK)
Monash was established in 2012 by Simon Shields and Shane Fitzgerald. The Monash strategy is benchmark unaware, style and stock size agnostic, and is both long and short.