Our Investment Philosophy
When identifying potential businesses to work with, we look for businesses that will provide good returns for investors while helping to make the world a better place. Rather than reinvent the wheel, we have chosen to adopt the proven “SMARTCO” template developed by Charles Breese
SMARTCO Investing
“In 1982, against the background of the UK experiencing a combination of ballooning public sector borrowing, a trade deficit and widespread unemployment, I developed the following template in order to help identify companies likely to thrive throughout economic cycles (including periods of turmoil) – it was based on analysing the principles adopted by business people who build businesses that compete on the basis of value rather than price, thus providing value for customers AND investors. In summary, my aim is to identify minimum ten baggers”
Charles Breese, Developer of SmartCo Investing
The Characteristics of a SMARTCO
The following are the six key characteristics of a SMARTCO:
Game Changing Technology
Commercialising game changing technology with the potential to provide solutions to global problems i.e. exporters.
Productivity Enhancing
Providing economic benefits to their direct and indirect customers i.e. competing on the basis of value rather than price, through improving customers’ productivity.
Generating Recurring Revenue
Pursuing a business model generating a growing stream of predictable income, resulting in less resource needing to be deployed on ongoing lead generation (which provides no value to customers) and more resource on product development (which benefits customers)
Potential Value of £100m+
Potential to be grown to a value of at least £100m, and significantly beyond that figure with successful ongoing execution of the strategy.
Partnership Focussed
The business must have the ability to build partnership relationships with customers based on a) exceptional knowledge and b) being prepared to work with customers at the product development stage through to volume manufacturing.
Industry Experienced Talent
A team containing personnel with industry relevant experience and P&L responsibility gained within a large corporate, with a track record of excellence.