Genesis
The 4Gs portfolio was born out of a desire to align my investments with long-term societal and technological transformations while maintaining a disciplined, value-driven approach. As a growth value investor with a slightly contrarian mindset, I sought to balance innovation, impact, and resilience in my portfolio. Another motivation was to limit my exposure to the fossil fuel players and their downstream and upstream value chains.
Over time, I identified four key themes each reflecting my interests, experiences, and conviction in structural shifts shaping the world. The 4Gs framework allows me to invest in high-growth opportunities while ensuring sustainability, diversification, and alignment with my core investment principles.
Investment thesis
The 4Gs Portfolio is built on the belief that long-term wealth creation comes from investing in transformative sectors that shape the future while maintaining a disciplined approach to valuation. As a growth-value investor with a slightly contrarian mindset, I seek companies positioned in high-growth markets but at fair valuations, avoiding speculative excesses.
My portfolio focuses on four key themes:
- Gray (Healthcare & Aging): Companies addressing the needs of an aging population.
- Green (Climate Tech & Energy Transition): Businesses driving sustainability and the energy transition.
- Gratification & Generational (Entertainment, Lifestyle & Cultural Icons): This category includes companies that define and evolve with each generation—from Gen W to Gen Alpha—shaping consumer behavior, culture, and technological adoption.
- Global (Diversified Geographic Exposure): Investing beyond borders, focusing on the company’s fundamentals rather than its country of origin.
I prioritize businesses with strong fundamentals, track record of shareholder performances, competitive advantages (leadership position), and sustainable impact, balancing growth potential with resilience to navigate market cycles. The Generational aspect of the portfolio acknowledges that every era has its defining companies—whether in media, technology, fashion, or consumer products—and aims to capture those shaping the identity and preferences of each generation.
Investment process
My investment process combines fundamental analysis, market screening, and strategic portfolio management. I identify companies with strong fundamentals, competitive advantages, and fair valuations, leveraging financial reports, earnings calls, and industry research. To refine my stock selection and timing, I use data-driven analysis through my Python-based KOI libraries, which help assess valuation, risk-adjusted returns, and momentum indicators like RSI. My portfolio is actively monitored and rebalanced, with a focus on long-term growth, dividend reinvestment, and sectoral shifts to align with evolving market trends and macroeconomic conditions.
Investment Criteria
I take a long-term, ownership-driven approach to investing—when I buy a stock, my intent is to own it forever. I invest in companies that not only operate in industries with strong growth prospects but also demonstrate a clear vision and strategic direction from management. I look for businesses with a well-defined competitive advantage, whether through pricing power, cost leadership, technological edge, or brand strength, ensuring they can sustain profitability over decades.
Management stability and a track record of delivering value to shareholders are critical in my decision-making, as strong leadership is key to navigating both market cycles and disruptive trends. I focus heavily on financial fundamentals, prioritizing strong cash flows, high return on capital employed (ROCE), and prudent debt management, always comparing a company’s leverage to its peers and broader industry practices.
Beyond financial metrics, I consider negative externalities, ensuring the company operates with sustainable, ethical business practices that won’t erode long-term value. While I seek fair valuations, I also factor in market sentiment, looking for opportunities where a high-quality company is temporarily undervalued due to short-term mispricing. This disciplined, patient approach allows me to build a portfolio of businesses that I can confidently hold for years—if not decades—without needing to exit.
Performances
2024
2024 was another great year for the 4Gs portfolio. Read the portfolio's year end results >>> here.
2023
2023 was a great year for Climate Tech Investors and the 4Gs portfolio. Read the portfolio's year end results >>> here.