Post by Augustine Chiagozie (@pabloexchange)

๐Ÿ“ˆ How Francois Rochon beat the market for 30 years

Canadian investor Francois Rochon has outperformed the market for decades by following a simple rule: buy great businesses at reasonable prices and hold them for a long time.

His framework starts with financial strength:

โœ”๏ธ ROE above 15%
โœ”๏ธ EPS growth above 10% annually
โœ”๏ธ Debt-to-profit ratio below 4
The goal is to own companies that are profitable, growing, and not dependent on excessive debt.
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๐Ÿ–ฑ Next comes the business itself.
Rochon looks for market leaders with a strong competitive advantage. He prefers businesses that customers keep using regardless of economic conditions, which helps reduce earnings volatility over time.
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๐Ÿ–ฑ Management is equally important.
He favors companies where executives own meaningful stakes in the business. He also looks for managers who allocate capital well, make sensible acquisitions, and focus on long-term value creation rather than empire building.
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๐Ÿ–ฑ Valuation is the final filter.
Rochon estimates what a company could be worth in 5 years and tries to buy it at roughly 50% of that future value. This gives him room for mistakes while targeting returns of around 15% annually.
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๐Ÿ–ฑ His current portfolio reflects that philosophy.
Top positions include Berkshire Hathaway (9.1%), Ametek (7.2%), Markel (6.8%), Alphabet (6.5%), CarMax (5.8%), Five Below (5.6%), HEICO (5.0%), Visa (4.6%), and Meta (4.6%).
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The strategy is not complicated.
Find exceptional businesses. Wait for a fair price. Hold them long enough for the business to do the work.

๐Ÿ“ˆ How Francois Rochon beat the market for 30 years Canadian investor Francois Rochon has outperfor...

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