We believe that a successful investment firm must be philosophically grounded in its investment activities. Our perspective is that over the long term, investment activities will be rewarded to the degree that they address actual needs and create benefits to society. We therefore invest in companies whose existence fulfills a real need in or provides benefit to society.
Our position is that progressive, sustainable growth companies have the potential for superior returns over time – the ideal company being one whose products or services are progressing toward becoming an integral part of the social and economic fabric, important for the day to day functioning of individuals and/or other companies.
The Prospect Fund conducts in depth research and analysis to select the stocks in its portfolio. Key traits we look for in a company include:
Recurring Revenue – When customers must keep coming back at least annually, we believe it is easier to achieve consistently strong annual growth because of the built in sales base.
Large Market Potential – If a company has enough visible room to grow its sales multi-fold, this increases its ability to sustain a high growth rate and reduces the impact of economic downturns.
Low Competitive Threat – This reduces the risk of pressure on sales volume and pricing.
Good Management – The strategic guidance provided by competent and ethical management enhances a company’s long term prospects through a variety of business conditions.