We take a great deal of care in choosing the companies that make up our investable universe. Only a very select few make the grade.
To begin with, there are about 2,200 companies listed on the ASX.
From that, we quickly whittle those down by half by excluding those companies that do not make a profit.
That is further halved by eliminating those that do not make a profit consistently and are therefore not of investment grade, leaving approximately 500 companies.
Against these 500 companies, we apply our stock valuation process. Those 500 companies are reduced to a universe of approximately 80 – 100 stocks by eliminating those with an inappropriately low return on equity.
From there we will conduct extensive qualitative and quantitative stock research and the final companies that “make the cut”, and in which we actively invest, are left at just about 20.
This rigorous approach has generated strong returns well above the market for many years. You can access this investment approach either via our Clime Australian Value Fund, or via a specially tailored individually managed account that we call our Discrete Share Portfolio service.
Remember you can also access all of the information and analysis that we have via a subscription in our stock valuation and investing tool, MyClime.
For more information on how you can access our successful investment approach, simply call us on 1300 136 255 or take a look at Clime’s Investment Products >>