Following the screening process which narrows the entire universe down to an appropriate group of investment alternatives, Vision Capital seeks to identify firms that demonstrate the following:
- Compelling business franchises which allow the company to meaningfully grow the intrinsic value of the firm.
- Solid existing business fundamentals (balance sheet strength, cash flow growth, etc.) as well as opportunities for enhancements over the long-term.
- Operate in industries that not only offer growth opportunities, but also allow the company to operate profitably.
- Are run by high-quality managers that are focused on delivering returns to shareholders.
- Attractive valuations. Vision fully appreciates the difference between a great company and a great stock. As growth investors it is required investments posses both a margin of safety, as well as the opportunity for meaningful price appreciation over a 12-18 month period.