Linde Equity’s investment approach centers on pursuing superior risk adjusted investment returns through investment in publicly traded securities. Linde Equity seeks the most attractive securities based on a total return basis. The total return mandate involves identifying securities that offer either significant capital appreciation potential, a high income yield, or a combination of capital appreciation and income.
Among the types of securities deemed most attractive on a total return basis, Linde Equity prioritizes investment in pure capital appreciation common stocks. Linde Equity believes that investing in common shares of rapidly growing companies generating high returns on invested capital, with superior business models and large market opportunities, create the most shareholder value over the long term.
While businesses sustaining high returns on their reinvested profits year after year to perpetuate rapid earnings growth are ideal for investment portfolios, they are rare to find. Consequently, Linde Equity invests considerable effort to search for such growth companies. Searching through the entire stock universe, Linde Equity researches Canadian and US large-caps, mid-caps, small-caps, as well as overseas companies trading on US exchanges. Linde Equity also considers growth stocks from all industries and sectors.
“The person who turns over the most stones wins!”
– Peter Lynch
Common shares offering a combination of capital appreciation and income are also an important part of Linde Equity’s model portfolio. These are commonly known as dividend growth stocks. While not offering as much upside as pure capital appreciation stocks, which typically pay little or no dividends, dividend growth stocks increase portfolio stability while offering attractive risk adjusted return potential on a total return basis. Shares of companies with strong business models and a high return on invested capital are also sought. These two traits enable both earnings and dividends to grow over the long term.
By casting a wide net and cherry picking the most attractive growth stocks and dividend growth stocks from across the stock universe, Linde Equity offers investors with tolerance for moderate volatility an opportunity to achieve superior risk adjusted returns over the long term.