Philosophy

Our investment philosophy

 

Cannon Asset Managers’ core investment belief hinges on the fact that emotions are dangerous. We often see investors becoming obsessed with short-term noise and “the next big thing”, rather than focussing on a few readily identified factors that are key to investment decisions.

We recognise this and understand that value is the quality of the asset you buy for the price you pay. We do not buy an asset because it is “cheap”. Rather we invest our clients’ money in high-quality assets that are trading at attractive valuations.

 

Cannon Asset Managers’ philosophy incorporates the following principles:

 

  • Cycles matter – value needs to be considered beyond naïve valuation multiples.
  • Be contrarian – investors tend to buy at the top and sell at the bottom. Be different, do the opposite.
  • Take an unconstrained approach – inefficiencies arise everywhere, but are most prevalent in unloved, unknown or under researched areas of the market.
  • History is the greatest teacher – this time is not different.
  • Forecasting is a futile exercise – history will show you what tomorrow looks like.
  • Patience is required – but without a catalyst, patience could have you trapped for a long time.
  • Understand your investments – only invest in businesses which you thoroughly comprehend.
  • Never stop learning – everyone makes mistakes, learn from them.

Systems and processes guide us, discipline us and help us manage ourselves. Applying the above principles consistently allows us to realise our mission.