Investment Philosophy

Harding Loevner believes that shares of high-quality, growing companies, purchased at reasonable prices, will provide superior risk-adjusted returns over the long term. Following this philosophy, the firm has defined four quality growth criteria that a company must exhibit before it will be considered for investment:

  • Competitive Advantage: a strong position within an industry with favorable global competitive structure, as manifested by high and/or improving margins;
  • Financial Strength: business-appropriate balance sheet and borrowing capacity availability, internal free cash flow generation capability;
  • Quality Management: track record of successful management with a clearly articulated business strategy and a consistent regard for shareholders; and
  • Sustainable Growth: prospective growth of revenues, earnings and cash flows.

This philosophy has served as the foundation for our investment strategies since the firm was established in 1989.