Tsai Capital leverages its unique research and employs fundamental analysis as it seeks the long-term growth and preservation of capital. Our fundamental analysis involves analyzing a company’s operations, financials, management, culture, competitors, value chain, and other factors.
We are solely focused on investing in compounders. We define a compounder as a high-quality business that has a durable competitive advantage and can reinvest capital at high rates of return over a long duration. The opportunity to acquire a compounder at an attractive valuation is rare and is subject to competitive appropriation.
In order to be in a position to move quickly yet in an informed manner, we do our work upfront. Knowledge acquired through intensive research is a critical element in minimizing risk. Tsai Capital follows a well-honed, time-tested research process and leverages an extensive network of fellow investors, analysts, executives, and business owners who help in idea generation and due diligence.
Once we have made an investment, our goal is to hold for the long-term in order to allow our clients’ capital to grow exponentially over time. Our long-term strategy is inspired by Albert Einstein who said, “Compound interest is the eighth wonder of the world. He who understands it, earns it; he who doesn’t, pays it.”