We believe capital appreciation is best driven by consistent and above-average earnings growth. Thus, we seek fast growing companies at reasonable valuations. We also seek undervalued assets that are mispriced by market irrationality. We may not be fully invested all the time and may from time-to-time keep relatively high level of cash to manage risks.
Besides reading third-party research, we believe strongly in visiting the ground and performing own research. Every year, we conduct hundreds of meetings with top management teams to understand the businesses and companies which they are building. We would only invest in a company if we can understand its business and have good confidence in its earnings growth prospect.