3 ideas
Select only companies that grew revenue at least 10% and earned at least 15% return on capital employed in every single year of the past decade, not on average. Requiring the thresholds to be cleared annually filters out cyclical businesses and one-off spikes, leaving firms whose economics have survived multiple downturns.
The portfolio is bought and then deliberately left untouched for a fixed holding period, like valuables stored in a can under the bed. The mechanism is removing the investor's opportunity to trade, because most value destruction comes from reacting to price moves and news rather than from poor initial selection.
Frequent rebalancing and trading erode portfolio returns through transaction costs, taxes, and mistimed exits. By holding high-quality companies without intervention, the investor keeps the full compounding stream that active turnover quietly leaks away.