Vine Capital Group does not attempt to predict the direction of the market, interest rates or the general economy. Vine Capital Group focuses on determining the value of individual securities.
The best investments are found among securities which are out of favor with the investment community, or which are not widely followed by other investors.
The investment attributes considered in all investments are summarized below.
Vine Capital Group evaluates a company not just on its assets and liabilities and reported earnings, but also on its management and ethical standards. You can have great business with great assets and earnings, with poor management. Our experience has thought us that great business with poor management is like branches that bears no fruit. It is like a branch that is thrown away and withers; such branches are picked up, thrown into the fire and burned. Vince Capital Group favors business with investor friendly manager with good ethical standards.
Vine Capital Group looks for "hidden assets", assets that are often overlook by most investors. For example, an office building acquired decades ago has probably increased in value over the years, and the value is unrealized on the financial statements.
Vine Capital Group looks for investments that have positive net working capital. We prefer to invest in companies that have relatively low levels of debt, we prefer companies that lend money vs. borrow. If we were to invest in a company that has a large level of debt, we prefer to buy the debt rather than the equity.
Vine Capital Group looks for companies that look out for the common good, and do no evil. Companies that promote common welfare that produce good fruit, fruit that will last. Example: avoiding companies that promote war, and pollution.