REQ Capital InvestingInValueCreators

Investing in Value Creators

Time Tested Principles for Long Term Stock Investments

apital is an asset management company based in Oslo.

e a true partnership owned by the founders of the

ny. We are long-term owners of excellent companies.

est in value-creating companies with management of the integrity. Our goal is to find the best corporate cultures

vest in them for the long term. We believe that our

ment philosophy and strategy will provide excellent long-

turns to our investors.

An investor mindset There are many ways to succeed or fail in the stock market.

This book on value creation offers one way to think about stocks as long-term investments. To benefit from the philosophy and mindset presented in this book, you as an investor need a very long investment horizon, spanning ten to 20 years or even more.

Some people prefer a short-term trading strategy in stocks.

Others prefer a fundamental approach. The goal of this book is to provide a brief and concise introduction to what determines shareholder returns over the long term.

The book presents some basic principles and fundamental reasons why some stocks perform significantly better than other stocks over the long term.

The key concept is "value creation". In the long run, the stock market is a very rational market. Shares of companies that create value over time will deliver strong share price movements. Shares of companies that destroy value will experience weak share price performance.

This book does not require lot of knowledge of accounting, finance, or valuation. It attempts to explain the key concepts of value creation and stock analysis in a way that is easy to

rience as a portfolio manager. And remember - there is

ntific formula for choosing the right long-term

ments. Hopefully this book will give you some principles to

u on your way to becoming a better investor.