"We exist to add value and enhance the wealth of our clients with prudence over time. For over two decades our growth-oriented philosophy and proprietary, criteria-driven fundamental research has been at the heart of executing our mission."
Frank M. Sands, CFAChief Investment Officer, Chief Executive Officer
We apply a single growth-oriented investment philosophy, rooted in the belief that, over time, stock prices reflect the earnings growth of the underlying business. As growth investors, we believe the earnings power of an asset drives value. To create wealth for our clients, we must concentrate investments in a select number of what we think are high quality businesses that possess the ability to sustainably grow earnings over time. In our view, there are relatively few truly outstanding businesses that can sustain earnings growth while maintaining a leadership position over the long term. To identify these businesses we use a fundamental, bottom-up, business-focused research process that relies heavily on our six investment criteria as our compass.
We think our odds of identifying and owning value-added investments are greatly enhanced when we have a high degree of conviction about how well a business meets these criteria. Our business-owner mindset and long-term perspective allow us to think differently. We focus on finding key insights to identify layers of growth that may be under-appreciated by the market. In addition, we fundamentally believe that providing clients with a concentrated and conviction-weighted portfolio is a powerful way of adding value with prudence over full market cycles. This has been our approach for more than 25 years. It will remain at the heart of what we do at Sands Capital.