Investment Focus Area
- Zara’s investment focus is on inefficient markets. We do not focus on daily, weekly, monthly, quarterly beating of the markets on a consistent basis, as such trading markets embody the definition of efficiency by being instantaneously efficient; all new information is immediately incorporated in prices, it is impossible to outperform by design such a market unless one has access to insider information, which is illegal anyways.
- Zara focuses on a business cycle of 5 to 7 years where there are a minimal number of players to trade/bring efficiency into the markets and where understanding of a business and its valuations lead to superior performance.
- Zara’s approach is strictly bottom up and is exclusively focused on investment risk ( i.e permanent impairment of capital/business value) versus the market risk( the risk of prices rising or falling) focus of most capital market participants. We expect reasonable returns from following an approach, that the successful and rich world over follow.