Investing is simple, but not easy
01
Buy a Compounder
We are buying a piece of a business that continuously offers unique value propositions for its customers
02
At a Reasonable Price
We wait patiently for a good price to buy the business
03
Sell in Discipline
We are disciplined to sell when the above no longer holds true
Our Proprietary Framework - TRUNITY HEXAGON MODEL
The Trunity Hexagon Model is our proprietary business analysis framework designed to evaluate companies from a holistic, long-term perspective. It assesses six key dimensions — value proposition, business model, competitive advantages, growth opportunity, management quality, and financial strength — helping us identify businesses with the resilience and potential to create enduring value across market cycles.
Value Proposition - The Job
Understanding “the Job” is the first step in decoding what truly drives a business. It goes beyond a company’s product or service to capture the deeper “value created” for its customers. For example, Louis Vuitton doesn’t just sell luxury leather goods — it delivers a sense of achievement, status, and for many, the feeling of having "made it."
In this case, the emotional connection is the real job being fulfilled.
We see this dynamic across many businesses in our investment universe, from a rising sportswear brand in Asia to a global consumer electronics leader or a century-old telecommunications firm. In each case, “the Job” might be providing identity, empowerment, or the reassurance of reliability.
While business schools refer to this as a value proposition, we see it as the heart of what a business promises — the unique set of benefits designed to solve a specific customer need. At Trunity, identifying “the Job” is the foundation for finding businesses with the potential to compound value over the long term.
Business Model - The Model
Once we uncover “the Job,” our attention shifts to examining the business model — the engine that transforms value into sustainable growth. At its core, a business model outlines not just what a company sells, but how it delivers those products or services to the customer.
At Trunity, we seek business models that foster sticky, recurring revenue streams, rather than purely transactional ones. Consider Louis Vuitton again — while the business appears transactional on the surface, the deep emotional bond customers build with the brand leads to loyalty and repeat purchases. What starts as a single transaction evolves into a lasting relationship, giving the business model resilience and the brand enduring power.
Across our investment universe, we consistently identify companies that excel at embedding themselves into their customers’ lives — whether through emotional resonance or habitual engagement. These businesses cultivate loyalty and create durable revenue streams, forming the backbone of a model capable of compounding value over time.
Competitive Advantages - The Moat
Once a business has defined “the Job” and built a sound delivery model, the next question becomes: how well can it defend what it has created? This is where the concept of a moat — its lasting competitive edge — comes into play.
A moat protects a business from erosion, shielding its market position from competitors and external threats. While products and services can be copied, true competitive advantage comes from barriers that are difficult to replicate: brand equity, switching costs, proprietary technology, regulatory protection, or economies of scale.
Returning to Louis Vuitton — beyond its business model lies a brand moat forged over decades. The emotional connection and status associated with its products create powerful brand equity, deterring customers from seeking substitutes. The result is pricing power, customer loyalty, and a level of resilience that few competitors can match.
In our investment process, we actively seek companies with such enduring advantages — businesses that have carved out defensible positions in their industries and continue to widen their moat over time. These attributes are critical in identifying long-term compounders capable of sustaining growth across cycles.
Growth Opportunities - The Runway
Contrary to the common belief that a long runway simply means fast-growing industries or disruptive technologies with vast addressable markets, at Trunity Partners, we define runway more holistically — as the company’s ability to continuously create value for its shareholders over time. This approach makes us inherently style-agnostic.
Sometimes, we uncover opportunities in mature industries, where market leaders or agile disruptors can consolidate fragmented competitors. In other cases, we find companies led by thoughtful capital allocators who consistently enhance shareholder returns through disciplined buybacks or dividends. Of course, we also explore traditional “growth” businesses — from emerging technologies to companies delivering unique products or services in expanding markets.
For us, the critical question isn’t whether a company can rapidly grow its revenue, but whether it can steadily compound value on a per-share basis — a principle that drives lasting wealth for investors.
People and Culture - The Manager
Warren Buffett famously said, “When a management team with a reputation for brilliance tackles a business with poor economics, it’s the business that wins.” At Trunity Partners, we agree that strong fundamentals are paramount — but we also believe that people can be decisive in shaping outcomes.
In sectors driven by innovation or undergoing disruption, leadership plays a critical role. Founder-operators often possess unique foresight and the ability to steer organizations through shifting landscapes. Similarly, businesses in the midst of transformation depend on capable leaders to reset culture, structure, and strategy.
At Trunity, we assess management not only on capability but also on character, vision, and the alignment of interests with long-term value creation. In certain industries, people don’t just complement the business — they are the catalyst for enduring success.
The Financials - The Money
Financials are the ultimate litmus test — the point where all other elements come together to reveal the true strength of a business. If our analysis has been sound, the financials will validate it by demonstrating resilient fundamentals and the ability to sustain performance over time.
At Trunity, we view a company’s intrinsic value as the present value of its future free cash flows, anchored in its capacity to deploy capital efficiently. That’s why we focus on businesses with consistently high incremental returns on invested capital — a clear signal of both capital discipline and the potential to generate durable, compounding cash flows.
In our Hexagon Model, financials aren’t just numbers — they are the proof behind the story, giving us confidence to invest with conviction.
"Discipline behind every decision."
At Trunity Partners, we apply this framework rigorously to every company we consider owning. The Hexagon Model serves as a cornerstone of our research process, guiding how we identify true compounders. For each investment, we produce a detailed report that reflects this disciplined approach — offering a thorough analysis and a clear articulation of our thesis before we allocate capital.
