“Bringing the Genius of Warren Buffett to Mauritius”

“We believe Mauritius can evolve into a credible platform for sustainable investing”

In an increasingly uncertain global financial landscape, Mauritius-based Accresco Investment Management is turning to the timeless principles of Warren Buffett for guidance. At a recent event in Moka, Chief Investment Officer Oliver Müller detailed how the firm is applying a disciplined, sustainability-focused investment strategy inspired by Buffett’s philosophy—refined to suit the realities of today’s markets.

Earlier this month, Accresco Investment Management convened a group of investors, financial professionals, and policymakers at Royal Green in Moka for a conversation that extended well beyond local borders. The theme—“Bringing the Genius of Warren Buffett to our Blue Ocean”—framed an evening of disciplined reflection on investment fundamentals, volatility, and long-term value creation.

The discussion was anchored by Oliver Müller, Chief Investment Officer of Accresco, who offered a detailed breakdown of how Buffett’s approach has informed Accresco’s own investment strategy, with a firm focus on quality, sustainability, and pricing discipline.

Revisiting Buffett, Reframing Value

Opening his presentation, Oliver Müller referenced Warren Buffett’s often-cited summary of his investing lineage: “85% Benjamin Graham and 15% Philip Fisher.” He expanded on this to illustrate how Buffett’s approach blends the quantitative focus of Graham—buying undervalued stocks based on intrinsic worth—with Fisher’s emphasis on qualitative business characteristics, such as durable growth and integrity of management.

“At Accresco, we’re inspired by Buffett,” said Oliver Müller. “But we’re not copying and pasting his portfolio. We’ve built a strategy we call Sustainable Value Investing—100% Accresco, but with Buffett’s DNA.”

Three Pillars: Quality, Responsibility, Valuation

Accresco’s investment philosophy rests on three core principles:

1. Quality: “We invest in businesses with strong fundamentals and sustainable competitive advantages—what Buffett would call an economic moat,” Müller explained. Examples include patent protection, network effects, and high switching costs.
2. Responsibility: ESG (Environmental, Social, and Governance) considerations are embedded in the investment process, not simply as ethical commitments, but as risk controls. “There’s a perception that you have to trade returns for responsibility,” Müller noted. “But over 3,000 studies show that ESG integration either has a neutral or positive effect on returns in the vast majority of cases.”
3. Valuation: Accresco adheres to the principle of buying below intrinsic value, creating a margin of safety that protects downside risk while positioning for long-term growth. “Even great companies can be poor investments if you overpay,” Müller said.

From Screening to Strategy

The investment universe begins with the MSCI All Country World Index—about 2,600 names. Accresco applies a multi-stage filtering process. Small caps are removed first, using a market cap threshold of USD 25 billion. Next, quality screens are applied, targeting high returns on equity, low leverage, and earnings consistency.

Responsibility is then evaluated using both exclusions (e.g., weapons, gambling) and best-in-class ESG rankings. This process narrows the list to approximately 120 stocks.

From this refined universe, Accresco manages two core strategies:

• Superior Quality Portfolio: A rules-based allocation to 50 large-cap stocks.
• Global Sustainable Value Fund: An actively managed fund comprising 25 high-conviction positions.

The Case for Concentration

The evening also revisited a contentious theme in asset management: concentration versus diversification. Müller cited research from Robert Hagstrom and Hendrik Bessembinder to challenge the orthodoxy of broad diversification.

“Bessembinder’s study, which examined nearly 26,000 U.S. stocks between 1926 and 2016, showed that only 41% created long-term wealth,” he said. “Why would you want to hold the entire market when most of it doesn’t add value?”

He continued: “Outperformance doesn’t come from tracking the index—it comes from being different. Hagstrom’s work shows that portfolios of 15 to 50 well-selected stocks have the highest probability of outperforming benchmarks.”

Performance and Resilience

Accresco’s Sustainable Value Investing strategy has delivered an average annual return of 15% since its inception in 2011. “This isn’t just about absolute performance,” Oliver Müller noted. “We’ve also done so with lower volatility, demonstrating strong risk-adjusted returns.”

He added that factor-level analysis reveals the outperformance of both quality and value indices over time. ESG-aligned indices tend to match the market, but add significant resilience in periods of stress. “The combination of all three factors is where we see the greatest advantage—better returns, better downside protection.”

A Mauritian Base, A Global Outlook

While headquartered in Mauritius, Accresco’s investment horizon is global. The firm operates independently of banks or insurance groups, and is a signatory to the United Nations Principles for Responsible Investment (PRI).

“We believe Mauritius can evolve into a credible platform for sustainable investing,” Müller said. “We want to contribute to that evolution by offering depth, discipline, and perspective.”

He concluded: “We’re not here to do everything. We’re here to do one thing well: help our clients grow their wealth through focused, responsible, high-quality investing.”

As global markets continue to test investor resolve, Oliver Müller’s message was clear—returning to principles, not reacting to noise, may still be the most effective strategy for long-term success.

Interview

Oliver Müller, Chief Investment Officer, Accresco Investment Management

“Market fluctuations present both risks and opportunities”

As Chief Investment Officer of Accresco, Oliver Müller reflects on an exclusive evening held in Moka to celebrate the legacy of Warren Buffett. Blending personal anecdotes with timeless investment principles, he shares insights into Accresco’s distinctive approach—rooted in value, discipline, and sustainability. In this interview, he also discusses what sets Accresco apart, their commitment to responsible investing, and the opportunities and challenges of operating in the Mauritian market.

Can you walk us through the idea behind the evening event, and how it came about?

Absolutely. I’ve been attending the Berkshire Hathaway Annual Shareholders Meeting in Omaha every year for the past seven to eight years. Held on the first Saturday of May, it is a magnet for professional and individual investors from over 40 countries. Prior to the meeting, the Value Investor Conference takes place at the University of Nebraska, where investment principles inspired by Warren Buffett are discussed in depth. This year, I had the privilege of being one of the presenters at the conference, where I spoke about Accresco’s philosophy of sustainable value investing.

Over time, I formed connections with key figures such as Bob Miles, the founder of the Value Investor Conference, and Robert Hagstrom, Chief Investment Officer at EquityCompass and author of The Warren Buffett Way. I invited them to Mauritius to share their deep understanding of Warren Buffett’s legacy. The result was an exclusive fireside chat at Royal Green in Moka titled “Bringing the Genius of Warren Buffett to our Blue Ocean – Uncovering Principles of Great Investing even in Turbulent Times.”

What made this event unique in the Mauritian context?

It was a powerful evening, gathering investors, finance professionals and decision-makers to reflect on timeless investment principles in the face of global economic uncertainty. Bob Miles and Robert Hagstrom shared decades of insights drawn from close observation and personal acquaintance with Warren Buffett. They highlighted the significance of intrinsic value, long-term competitive advantage, and the importance of temperament over intelligence when navigating markets. As Hagstrom said, Buffett’s genius lies in his ability to avoid risky opportunities and stay true to simple, fundamental truths.

Tell us more about Accresco. What makes your firm stand out?

Accresco was established in 2018 and is licensed by the FSC as an investment adviser with an unrestricted license. We serve individuals, corporates, and institutional investors like pension funds. About two-thirds of our assets are invested internationally, with the remainder in the local market. Our investment model is deeply rooted in value investing and fundamental stock-picking.

We are not index followers. Most of our peers build broadly diversified portfolios that mirror the market. We do the opposite. We are highly selective and conviction-driven. For example, our AIM Global Sustainable Value Fund focuses on just 25 stocks. Another of our flagship strategies, the Superior Quality Portfolio, contains around 50 stocks. We also offer tailor-made portfolios on a discretionary or advisory basis.

Is there a minimum threshold for investing with Accresco?

We aim to make high-quality investment advice more accessible. While there are no hard requirements, we typically suggest a minimum of MUR 1 million or USD 20,000. This allows us to construct a solid portfolio with meaningful diversification. We serve a broad range of clients, from emerging affluent investors to high-net-worth individuals.

How would you describe the current investment climate?

After two consecutive years of nearly 20% returns in international equities, we anticipated increased volatility in 2025. As a precaution, we raised cash levels in Q4 2023 and began reinvesting selectively during the April pullback. Our outlook for the year remains positive but more subdued, with expected returns in the range of 5–7%.

Market fluctuations present both risks and opportunities. What matters most is the investor’s temperament. Too many investors panic when markets fall and sell at the wrong time. We emphasize patience and discipline—two qualities that Warren Buffett embodies. In the current context, corporate earnings remain strong, especially in the U.S., which supports a steady, if moderate, market performance.

Your approach is inspired by Buffett, but you don’t copy him. Can you explain?

Indeed, we are not replicating Buffett’s portfolio. At present, we own none of the stocks he holds. What we do is adopt his principles: we look for high-quality businesses at fair prices and apply these principles globally, including in emerging markets. Unlike Buffett, we are open to selected tech stocks and local equities.

Accresco has also embraced ESG. How does that fit into your value investing philosophy?

Quality investing naturally overlaps with ESG. We believe that companies that care about their environmental footprint, treat employees well, and practice good governance tend to perform better and are less exposed to major risks. ESG is not only about ethics—it’s a crucial risk management tool.

Consider the Deepwater Horizon oil spill involving BP or the Vale dam disaster in Brazil. These events not only caused environmental and human tragedies, but also resulted in massive losses for investors. Avoiding such companies through rigorous ESG analysis helps us protect portfolios.

As signatories to the UN Principles for Responsible Investment, we integrate ESG considerations into all aspects of our strategy. Since launching our Sustainable Value Investing strategy in 2011, we’ve achieved an annualized return of 15.3%.

Can the same principles be applied to the Mauritian market?

Yes, absolutely. However, the local market has its challenges, especially in terms of liquidity. It can take weeks to build a meaningful position in certain stocks. Investors need a longer-term mindset, as short-term gains are harder to capture.

That said, our methodology remains the same. We apply strict selection criteria, and from around 50–60 listed companies in Mauritius, fewer than a dozen typically meet our standards. But we do find high-potential opportunities locally, and we are committed to supporting Mauritius’ journey toward becoming a hub for sustainable investment.

What’s next for Accresco?

We will continue to deepen our boutique approach, focused on quality and sustainability. We don’t aim to be everything to everyone. Our ambition is to build a wealth management business in Mauritius that stands shoulder to shoulder with the best in the world. Events like the Buffett evening are part of that mission—to bring global thinking to local realities, and to encourage more responsible and strategic investing across the region.