INVESTMENT STRATEGY
Archalos Investment Strategy
GATHER
PROCESS
ANALYZE
SELECT
INVEST
STEP · SELECT
Select
We narrow the universe to a focused set of 50–75 companies that meet our values bar and our quality bar — no compromise on either.
The focused portfolio
When character and financial discipline reinforce each other, a clearer picture emerges.
That’s how we move from 1200 hundred companies to a focused portfolio of 50 to 75 stocks.
What results is a portfolio built to endure and focused on long-term value creation rather than short-term momentum.
The Archalos Process
Once we've identified winning companies based on qualitative factors, we use a combination of fundamental and valuation analysis to arrive at a portfolio focused on companies with enduring qualities that are strategically well-positioned in the marketplace. We emphasize financial health, the potential for long-term organic growth, a strategic and competitive market position, and cash flow generating ability.
Our financial analysis favors companies that are actively positioning themselves to profitably grow over the next decade, not just the next few quarters.
Qualitative Analysis
Most investors focus exclusively on financial data. At Archalos, we focus heavily on a company’s intangible qualities. While we do not ignore financial and fundamental analysis, our portfolio companies are determined by ranking their character and culture.
We identify and systematize 15-20 intangible corporate qualities. Each of these traits is backed up by empirical studies showing that businesses possessing these qualities tend to have enduring success.
To find and measure these traits, we have developed a proprietary framework, using a combination of software and analytical tools. By processing massive amounts of unstructured data (press releases, articles, blogs, corporate filings, company statements, etc.) our software enables us to identify and assess which companies possess the qualities.
Ready to get started?
We offer digital onboarding with a simple online form. You can have a fully-funded Archalos investment account in just a few days!