PROCESS

Research: Laidlaw Group researches our investments through analysis of fundamentals and the characteristics of the business environment in which the investment operates. All of our research is generated in-house and not reliant on external analysis.

Quality of Business

• Profitability
• Growing market for company’s goods/services given economic trends
• Leverage within the business model
• Favor businesses with:
  • Barriers to entry
  • Brand Strength
  • Self-Financing

Persistence of Opportunity

• Research unique business climate
  • Pricing power & substitutes
  • Inputs & the suppliers’ power
• Avoidance of deep cyclical companies

Qualitative Characteristics

• Shareholders’ power vs. management
• Management quality
• Integrity and transparency of financial reporting & communication

Valuation

• Discounted cash flow model
• Asset/liability analysis including intangibles
• Ratio analysis: peer comparison & historical study