As an investor I have one simple principle: Find value. That’s it. Wherever value presents itself, I’m willing to venture. Shares aren’t pieces of paper or blips on a Bloomberg screen; they’re pieces of ownership in individual businesses. Because of this, I seek to invest in businesses with large insider ownership, positive free cash flow yields, large runways for growth, and little to no debt. I’m not trying to reinvent the wheel. I am following the principles of value investing that have worked for generations.
Most of the businesses I invest in are in the smaller, more illiquid spaces of the market. I find that these areas tend to be generally misunderstood on Wall Street, and thus have the potential for greater value creation. Areas with no analyst coverage and little institutional ownership can be fertile grounds for great businesses at discounted prices to their intrinsic value. Along with these businesses, a portion of my portfolio is comprised of special situations such as SPAC’s, spin-offs, mergers, or rights offerings. Similarly to the small / micro cap space, special situations investing can be extremely valuable if one is willing to do the due diligence to understand the potential value.
Finding a large margin of safety prevents permanent loss of capital, keeping us in the game long enough to find those great businesses at ridiculous prices.
I’m not a financial advisory service, hedge fund, or investment bank, nor do I claim to be. The thoughts, analysis, and hypotheses on markets and securities are mine and mine alone (with the exception of potential guest contributors). I never claim to speak for anyone else, and my explicit hypotheses are not charging calls to invest. Past performance and correct hypotheses do not predict future performance.
The purpose of this blog is to develop a public track record and a following so that in the future, opening up an investment partnership becomes a possibility. Any and all trades that are mentioned in this blog are from a PAPER TRADING ACCOUNT with TradingView.com unless explicitly mentioned otherwise.
I fully expect and anticipate to be judged based on my Five Year track record. Over the short term, NAV of the Fund may swing wildly in a positive direction, or wildly in a negative direction. However, over the long term, the compounding nature of the great businesses we seek to own should generate outsized returns compared to standard benchmark indices.