Using our nonlinear, living, complex systems investment approach, we are able to easily integrate fundamental, value-based investment principles. They are built into our living system process. There is not the duality we find with many investment approaches that divide the investment world into two groups: impact/sustainable/ESG vs. regular investing. We believe that taking this whole systems approach is necessary to restore our health, vitality, environment, education system, our overall economic system, …This is not an allocation decision. This is just the natural, organic way our economic and financial systems need to evolve to stay relevant. There are far too many unintended consequences of using linear process on nonlinear complex problems. Many of the existing impact and sustainable investment approaches are still using linear frameworks. We are not inventing something new. Nature already has what we need to address these difficult issues. However, considerable fear of chaos and losing control get in the way of efforts to change the status quo. That is why a conscious, whole system living system approach is necessary. The vitality, creativity, and regeneration that are possible using these principles more than make up for what we are losing in the transition. Whether we like it or not, the world is changing and old systems are falling apart. Following the wisdom of nonlinear systems in nature is the only way we can regenerate our systems across society in more win/win ways. Fortunately, advanced science and technology is mirroring these natural principles in ways that make analyzing and solving problems much easier.
We are able to leverage the positives that come from the core, values-based investment principles that we learned in the investment management industry, and, at the same time, evolve and transition old investment models and frameworks that are too rigid and no longer belong in this new paradigm. We use a highly disciplined research and investment framework to analyze and help build up essential businesses in society. We analyze far more than just the financial forecasts. We look at the overall markets and industries. We look at evolving trends. We meet with a wide variety of industry experts and go to numerous conferences. A good analyst is humble and open to new information and very proactive about gathering information. We do not sit around our offices waiting for the phone to ring with important information. We study the people as well as the business strategy and financials. We look at all the barriers to entry and all the business risks from multiple perspectives. One of the most important rules for any investor is to follow your process and stay disciplined about it. We invest for the longer term. We are patient investors. We like to invest early, following new industry trends carefully and like to invest before or just after new product rollouts. The easiest way to understand this investment process is that the system-based framework helps us to better understand the problems we are solving and ideas about how to solve the problems. We screen our public and private investments from this perspective. Before making any investment, we are very rigorous, post our initial screens. We use this disciplined investment process to find the best opportunities possible that will make resilient returns for our investors as well as manage the wide variety of risks inherent in investing in small, growing businesses. We also follow this same process on a regular basis to follow all our investments even after we make the investments and communicate this information to our investors. We admit when we make mistakes and come up with tangible solutions as efficiently as possible even if it means selling investments and deciding not to continue investing in any one particular company.
- Detailed, pro-active, bottom-up research using all available resources, such as our expert advisors, industry conferences, literature searches…
- Do not wait for people to call us. We actively research industry and company trends and seek out the most promising opportunities across the world for both our public and private investment offerings.
- Quality of clinical/scientific data and other technology validation.
- Ability of management teams to properly execute on their strategic vision and manage resources wisely.
- The industry and product market size potential.
- The identification of barriers to entry such as competition, quality patents and innovative manufacturing.
- Other validating data such as customer feedback, proper business/strategic partnerships and planning…
- Investment and other resources required over time to meet objectives.
- Potential gaps in business, technical and necessary resources that we may be able to address with the help of our advisors, consultants, and investor club members.
- Market and company specific risks.
- Whether companies are using technologies and business strategies that are in harmony with physical laws of nature.
- Other operating, financial, and valuation details.
- Early identification of critical new industry and company specific trends.