The team believes that the predominant modes of market segregation (based on sector or geographic preferences) are not useful starting points when thinking about the merits of investing in a company. Instead, the most beneficial information to an investor is how effective a company has been at generating cash flows as compared to the rest of the market. That effectiveness can be measured and is ultimately a good indicator of where a company lies in its corporate lifecycle. The team captures this information for every company at the onset of the process, and by focusing on a company’s economic returns and its reinvestment rate, more accurate assumptions can be made about the future generation of cash flows – the basis for a company’s stock price. The international team’s process incorporates this idea in its investment process from start to finish.