That is why we are not only quality-focused but also opportunistic when the moment presents itself. Sure, we look at RoC, free cash flow and don't want to buy bad managements. But more importantly, what we strive to do is capture the gap between perception and reality. That is where, in our view, you can make an incrementally high return.

Let me detail that a bit. There is a gap between perception and reality of the quality of the business, the management, the ROIC profile and earnings growth. We are trying to play and capture that gap. More often than not we are right and our perception does catch up with reality. To rephrase: We invest in businesses where we think the earnings power is dramatically different than what the market thinks it is from a five to 10-year perspective.

That is our edge. Obviously, it is not an easy thing to do. It requires a finer understanding of businesses and companies. It also r