Oracle Investment Management is a boutique investment manager that provides innovative investment solutions for individuals, families and superannuation funds that are seeking to build their wealth.
We specialise in the active management of equity and fixed income portfolios that can be tailored to individual circumstances.
At Oracle we follow an active, high-conviction investing philosophy combined with a bottom-up growth investment process. The Oracle team applies growth, quality, and valuation tests to companies while positioning their investment style towards quality businesses that display sound growth opportunities.
We look for great businesses, with enduring competitive advantages that are trading at a discount to our calculation of intrinsic or fair value.
We focus on the long-term prospects of the businesses rather than the day to day gyrations that occur in the market on a regular basis. Our experienced investment team have developed a proprietary approach to scouring the markets for the best investment opportunities, with the aim of providing investors with consistently superior investment returns.
The Oracle Investment Philosophy
Oracle takes a high conviction, bottom-up approach to investing, seeking high quality, proven and growing businesses with enduring competitive advantages that are trading at a reasonable valuation.
We focus on the company’s fundamentals first, assessing the earnings growth potential and the likelihood of return of capital to investors. We then assess the impacts of the macroeconomic environment on the company and the industry in which it operates.
Our portfolios are long-only and typically will own between 20 and 40 companies. We believe this provides investors with sufficient diversity to reduce over-exposure to any one company, whilst also remaining sufficiently concentrated enough to experience the benefits of outperformance of individual companies.
Our Investment Process
Oracle employs proprietary screening tools to uncover companies that exhibit the desired characteristics of businesses that we believe will outperform the market over time.
These characteristics typically include:
- An enduring competitive advantage, with strong barriers to entry protecting their position in the market
- A proven track record in earnings growth and high return on equity
- A high return on equity
- A strong balance sheet with little to no debt
- A competent and approachable management team with a demonstrable track record, and alignment with shareholders interests
Our research team prepare extensive financial models and valuations to determine an estimate of the future earnings power of the business based on realistic assumptions.
We compare our valuation to current market prices to ascertain whether the company is fairly, or overvalued.
Wherever possible, we aim to meet with the management of the company to gain a deeper understanding of the business. Our team are in regular contact with the senior management of many companies we research as part of our ongoing investment process.
We believe management contact is central to truly understanding a business. We gravitate towards founder-led management, as this leads to longevity of service and a high-level of alignment with shareholder’s interests.
Our interests are your interests
We believe it is important to practice what you preach, which is why our team are invested in the portfolios alongside investors. We are all eating from the same plate.
We understand that investors come from all walks of life, each with their own financial goals and varying approaches to risk.
For this reason, we offer 5 model portfolios, each with their own investment goals and universes. These include:
- Australian Equities Portfolio
- Global Equities Portfolio
- Australian Emerging Companies Portfolio
- Fixed Income Portfolio
- Property Securities Portfolio
For more information on our each of our model portfolios, please see the Investment Options page.
At Oracle we follow a strict investing philosophy whereby we look for high quality, easy-to-understand businesses that we believe will continue to grow in value into the future.
Warren Buffett is one of the most successful and well-known investors over the past 50 years, having achieved well above average investment returns over the long term.
Our name Oracle is an ode to Warren. He continues live his life in Omaha, Nebraska and is affectionately known as the “Oracle of Omaha”.
“Someone is sitting in shade today because someone planted a tree a long time ago” – Warren Buffett