Investment Focus Area
- 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.
- 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. In such trading markets all new information is immediately incorporated in prices. It is impossible to outperform 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 an understanding of a business and its valuations lead to superior performance.