Preserving and growing your wealth
By delegating the management of your assets to Mercato, you benefit from a range of skills and expertise geared simultaneously to protecting your capital and to growing your assets.
Value-based with a focus on quality
Investment results are driven by the price paid and we always look to buy companies trading at an attractive price relative to their normalised earning power / asset value. We focus on high quality companies with sustainable competitive advantages, as we believe that this increases the potential for capital to be compounded over time.
Driven by underlying stock valuations, our flexible approach allows us to avoid expensive assets and default to cash whilst we wait. We have no mandated levels of equity exposure.
We focus on understanding the qualitative and quantitative aspects of the businesses that we own, rather than trying to forecast the highly uncertain future. History has proved that humans are poor forecasters and that this adds little value to the investment process. In addition, research has proved that economic growth and equity performance are not correlated – further proof that even an accurate macro forecast doesn’t guarantee investment success. The emphasis (and extrapolation of) recent events (good and bad) often leads to mispricing of assets and this is where we seek to generate outperformance. This often means investing in currently unpopular companies and industries.