Investment Philosophy & Strategy

The philosophy of Y H & C Investments is to maximize the assets of investors and do so as tax efficiently as possible.  The stock market has always been volatile, so business values fluctuate in a range of tremendous extremes, which is why there is a great deal of opportunity.  The economic reality for any investor or entity trying to grow their capital is there is only so much money available for investment, so putting it to use in the most productive way has to be the priority.  

Good investors always try to get the most out of their capital, regardless of a specific investing style. History has repeatedly shown the path to wealth lies in finding great companies which have strategic competitive advantages and holding them as they grow larger and larger. Such investments are not easy to find, especially at good prices.  The priority of Y H & C Investments is creating portfolios where the majority of assets are placed in superior enterprises. 

High Quality Companies

The foundation of the investment strategy is to own the highest quality companies which have historically proven they can create shareholder value over long periods of time.  The entities can do this in a variety of ways.  The characteristics of these kinds of companes include the following:

Operationally Efficient

Strong Cash Flow and Free Cash Flow Generators

Large Total Addressable Markets

Unique and Highly Profitable Business Models

Irreplaceable Industries

Industry Leadership and Strong Competitive Position

Brand Identity is A Competitive Strength

Management Teams Are Flexible and Creative in Value Creation

Structural Advantage 

Benefit from Difficult Economic Periods 

Capitalizing On Market Mistakes

As a way to help generate superior returns, the second portion of the investment strategy is based on identifying and capitilizing on specific opportunities where the market has incorrectly priced an asset.  These situations usually are unique, but many revolve around the following areas:

A critical intersection in an industry

A turnaround

Financial engineering situation

Sum of the Parts Mispricing

Changing Efficiency of Operations