‘Time is the friend of the wonderful company, the enemy of the mediocre.’ ~ Warren Buffett

How Does the Coffee Can Investment Strategy Work?

1. Focus on high-quality companies: The coffee can investment strategy involves investing in high-quality, well-established companies with a consistent track record of growth and profitability. To be considered as a sound investment opportunity, the company should demonstrate that it has been in business for at least 10 years and sustainably generating returns of a minimum of 15% on its capital employed over this period.
2. Look for market leaders: These companies are typically market leaders in their industry, with a competitive edge that allows them to maintain their market position over the long term.
3. Invest in a small number of companies: Rather than trying to diversify across a large number of companies, the coffee can investment strategy involves investing in a small number of high-quality companies.
4. Hold onto the companies for an extended period of time: Coffee can investors don’t worry about short-term gains and market volatility. Once you’ve selected your stocks, hold onto them for an extended period of time, typically 10 years or more – don’t let fear and greed get the better of you.
5. By holding onto these companies for an extended period of time, investors can benefit from the power of compounding, as their returns are reinvested and grow over time.
6. By investing in high-quality companies with a strong track record of growth and profitability, investors can benefit from the long-term growth potential of these companies.