5Rivers follows an investment philosophy which is primarily fundamentals oriented and long-term in its intent. The approach is to understand businesses and buy a 'share' of the business rather than scraps of paper at any price.
In fact, this investment style believes that stocks will be cheap only if they are currently ignored by the markets, i.e. the potential of the business is not fully discovered. As a natural consequence, long waiting periods till the company is understood and the stock price adjusts for the true potential are a norm in this mode of investing.
The approach is essentially Bottom-up rather than Top-down, where each company is analyzed for uniqueness in business model and sustainability of growth led by clear competitive advantages vs. other players in the sector. The Bottom-up approach focuses on individual company strength rather than macro-economic and sectoral themes, as a basis for investment.
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