Investment Philosophy

Veritas believes in a disciplined long-term approach to investing. Daily market fluctuations and media hype will not drive us to make rash decisions out of fear or greed. Veritas believes that market timing and performance chasing are losing strategies.
Veritas aims to build wealth and add value through appropriate asset allocation, but has an affinity toward the small-cap value asset class. Over the long-term, value stocks have outperformed growth stocks in most of the investment periods, and small cap stocks have consistently outperformed large cap stocks. This is what is known as the size and value effect which is most commonly associated with the work of Eugene Fama and Kenneth French. 
Keeping investment costs low is crucial to reaching your financial goals. High investment costs can create a major drag on net investment performance. Veritas seeks to maximize value and performance and keep investment costs to a minimum. The compounding effect of keeping fees to a minimum can be huge over time. See The Impact of Fees for an example.

Our investment philosophy is driven by seven core principles:

• Minimize fees
• Invest with discipline
• Keep a long term perspective
• Apply appropriate asset allocation
• Utilize size and value effect
• Avoid market timing and performance chasing
• Ignore media hype and hysteria

We invest in companies with the following characteristics:

• Stable industry
• Durable competitive advantage
• High profit margins
• Ample free cash flow
• Strong balance sheet
• High barriers to entry
• Strong company management
• Trading below intrinsic value