Investing - with value in mind
"Someone's sitting in the shade today because someone planted a tree a long time ago" - Warren Buffet
Investment philosophy
First and foremost, this website is a mere blog to voice certain views and opinions related to investing. The investment style and philosophy applied is influenced by some of the great minds that have been kind enough to share a piece of their knowledge. Building on such information has been fundamental in shaping this investment style. The ultimate goal is to utilise the tools available in order to maximise investment returns over a long term horizon. As a result, a great deal is placed on the price paid to acquire a piece of a company in order to achieve adequate returns.
When estimating the price paid several inputs are used, both quantitative and qualitative. Emphasis is placed on facts as opposed to guesses, on quality of management, on competitive advantages and their durability, on understanding and limiting behavioral risks pre and post investment, as well as monitoring the circle of competence and its overlap with a particular investment.
The ultimate goes is to achieve an absolute annualized return north of 10%. Risk is interpreted as the risk of suffering investment losses resulting in capital destruction. Therefore, standard deviation, Beta and other statistical measures are not used to measure risk as that would be inadequate. The portfolio will be concentrated in order to optimise the information accumulated on certain companies and maximise its utility to attempt derive an edge over other market participants. Behavioral irrationality from the herd will be exploited as much as possible in order to benefit from those short windows where markets a dysfunctional. As a result from seeking irrationality to achieve outsized gains, investment behavior will often be contrarian.
Thoughts and write ups on the Substack
The eToro experiment
eToro experiment: The portfolio section will refer to a portfolio on the platform eToro, which is run as a static portfolio since 2020/2021. Therefore, performance is achieved without adding money to the portfolio by solely reallocating existing capital. Other investments outside eToro might be held because eToro has a lot of securities missing, especially small-caps and exotic markets. There I might hold additional securities to the ones displayed on eToro. However, eToro will be used as a third-party source holding independent verifiable performance data and run with care and diligence in order to simulate a portfolio run on a best effort basis in an environment with fewer securities available.