Timucuan evaluates businesses in three primary areas. To be selected for the portfolio a company must meet the following criteria:
We look for honest and talented managers with a demonstrated history of putting shareholders first. Those able to effectively manage operations while allocating capital to best benefit shareholders are a rare find. We aim to partner with managers who have this combined skill set.
High Quality Business
We seek to own businesses that offer a compelling value proposition to customers, and enjoy distinct and enduring advantages relative to industry competitors and would-be entrants. High quality businesses typically share certain attributes including a limited dependence on rapid product life cycles and an ability to generate high returns on invested capital.
A business that otherwise qualifies for investment will only be purchased if it is trading in the public markets at a substantial discount to our determination of its intrinsic worth. This discount represents a margin of safety intended to protect capital from permanent loss.