Our Investment Process

Yilmaz Capital employs a very simple investment process. Our strategy is to buy great companies with a margin of safety.

1 Buy great companies

Earn high returns on invested capital
Have ample reinvestment opportunity
Enjoy sustainable competitive advantage that defends against the competition

We look for great companies and study them religiously.

2 Margin of Safety

Market price, considerably below intrinsic value
Prudent management team

When market presents us a great company with a margin of safety, we invest.

Characteristics Of

Great Companies

Before considering which companies to invest in, we do fundamental business analysis. We have learned over time that great companies share the following 6 characteristics:

1- Demonstrated consistent earning power

2- Abundant growth possibilities that are driven by reinvestment of earnings at high rates of incremental return

3- Limited capital requirements

4- Ability to protect returns against competition with a durable competitive advantage (moat)

5- Little or no debt

6- Simple and predictable with reliable customers and demand