• Any screening process starts with the search for a one-of-a-kind business and a strong business franchise. This almost always requires a high degree of customer retention generating recurring revenues. Such businesses have nearly always a high return on capital and can generate organic growth.

• We have defined six industries which we believe we understand quite well. In these industries we have a good chance to asses the risks which are created by shifts in the overall system of markets and competition ("system risks"). This is our "Circle of Competence".

• We observe again and again that the simpler a business model is, the higher the resulting profits. Complexity is deadly for returns. This is why we avoid conglomerates and complex companies.

• We do not invest in sectors or companies with risks which we can not fully assess. This includes the whole area of technology businesses.