Moats, Not “Growth Stories”
Growth is the guiding mantra for most investors in Asia. Not for us. We start with the premise that business quality, capital allocation, and valuations matter more than a well-told, well-promoted “story.” The Moat Report Asia sets a new standard in Asian investment research by focusing on what matters to long-term investors: durable competitive advantage, long runway for capital reinvestment, and capable, interested and honest management. Not growth for growth’s sake.
Avoiding Value Traps
With tens of thousands of companies, scant research coverage, and periodic macro-driven sell-offs that create bargains, Asia is fertile ground for bottom-up investors. However, taking advantage of the opportunities from the U.S. or Europe comes with pitfalls due to different accounting, governance and other factors. While it may not be hard to identify the quantitatively “cheapest” equities, it is not easy to uncover cheap businesses that possess durable moats and good management. With The Moat Report Asia, move from screening toward deeper appreciation of what drives fundamental value in Asian equities.
Finding Friendly Insiders
Investors based outside Asia sometimes do not fully appreciate the investment implications associated with family-controlled companies in Asia. The prevalence of such businesses makes an understanding of the incentives of owners paramount to investment success. The Moat Report Asia draws on KB Kee's extensive on-the-ground experience to identify managers who are capable of and incentivized to compound capital for all shareholders. In-depth local knowledge of key people and their businesses enables us to bring you temporarily undervalued yet high-quality Asian equities.