The Perpetuity Portfolio

I am not searching for "cheap" stocks in the traditional sense; I am searching for mispriced endurance. I avoid deep-value traps and "catalyst" plays, focusing instead on businesses that the market underestimates in their ability to survive and compound capital over decades. I. The Cornerstones My philosophy is built on the belief that complexity is a tax on longevity. I seek "boring" excellence over flashy disruption. Simplicity: If the model requires buzzwords like "proprietary blockchain," I pass. I want companies that do one thing relentlessly well. The Engine: High returns on invested capital (ROIC) are non-negotiable. Without them, compounding is impossible. The Runway: I need space to grow. A high-ROIC business must be able to reinvest its profits at similarly high rates to become a true multibagger. II. Assets and Criteria I trade high-quality global equities, specifically targeting founder-led or owner-operator firms. My "Quality Floor" includes: ROIC > 15%: Consistently maintained over a 5-to-10-year cycle. Structural Moats: I look for switching costs, distribution dominance, or embedded workflows—advantages that strengthen over time. Financial Fortresses: I prefer net cash positions or minimal debt. This provides optionality during market stress. Skin in the Game: Management must think like owners because they are owners. III. Execution and Horizon I do not time the market; I time the business. My average holding period is 5 to 10 years, and ideally indefinite. I only exit if the "endurance" breaks—meaning the ROIC floor collapses, the owner-operator exits, or the business model becomes unnecessarily complex. IV. Information Sources I ignore macro-noise. My decisions are rooted in: Primary Filings: I study 10-Ks and shareholder letters to judge capital allocation logic. Historical Data: I track 10-year trends in margins and efficiency to verify the moat. The "Scuttlebutt": I investigate brand trust and customer retention