Regardless of our conviction, we will not concentrate in just a few companies. Diversification helps us to remove the possibility of permanent capital loss. .
Just like a strong Wisteria tree, great businesses takes time to grow. Patience is a virtue. A long time period allows these great businesses to grow their value and you as shareholders to reap the rewards.
Not every stock picks will be winners. Historically, we find winners 60-70% of the time. The winning facto is to stay invested in our winners and cut the losers. Because great businesses tend to keep winning.
Market can decline >20% every 4-5 years and >30% every 10-12 years. While such declines are gut-wrenching, most of our past returns come from such times. Therefore, we embrace volatility and intend to take advantage of it and buy more stocks when the market is on a discount.
During times of extreme optimism, stock prices can rise to extreme levels. This could lead to investors chasing irrational prices. Our approach is to stay rational during irrational times. We must value the company for what it is worth and not over pay for it. Buying undervalued companies give us an margin of safety and better future profits.
Investing with us means focusing on the long term. Short term is too unpredictable and akin to gambling. Stock market investing is a long-term game - a marathon, not a sprint. We aim to achieve excellent returns over a 5- to 25-year period
Thank you for your interest. If you are interested in my investment service, please take some time to read this letter.
After teaching thousands of investors over the years, I have had the joy of witnessing investors developing their own independent portfolio and achieving multifold returns.
However, the journey is not all rosy, I've also seen the investors losing the bulk of their investment in a matter of months.
The huge disparity in returns baffles me for years. Afterall, I teach all my students the same content to the best of my ability.
I realise the key difference lies between the investors leaving my class and executing their own investments. While the investment methods are the same, in order to achieve good returns, investors must master two of the most difficult part of investing - Time & Energy and Mindset.
Time & Energy - Most investors do not have the luxury of full-time investing. The realities of life pull us in all directions and demanding every bit of our limited time and energy.
Investors equipped with the best knowledge will still find it hard to invest successfully without dedicating time and energy to their portfolio.
Mindset - Most investors do not have the ideal investing mindset.
Peter Lynch, perhaps one of the greatest fund managers, ran the prestigious Magellan Fund for 13 years and during those years, he achieved a CAGR of 29%.
However, one study revealed that the average investor in the fund actually lost money. Yes amazingly, the average investor lost money in the Magellan Fund under Peter Lynch’s tenure during a period of time when the fund returned around 29% annually.
Why? My guess is that most investors act emotionally. They enter and exit their investments based on short term results.
When investments go down, they get scared and sell at the bottom. When the market goes up and they get greedy and want to jump on the train. They buy at the top.
So after giving it much consideration and planning, an interesting thought came to me one day.
"What if I can invest for them?"
That's the birth of Truffle Portfolio.
Why Truffle? Truffle is hard to find and unassuming when it is buried in the ground. But once it is discovered and peel off the dirt, you will be greeted with the familiar truffle smell that everyone recognise.
This is similar to our investing methods, digging through the dirt and discover the "truffle" amongst the thousands of companies in the market.
In addition, their portfolio will also invest based on my investing mindset too. Those without time, energy and the know-how can leverage on my expertise and still achieving investing success.
Under the investment service, I will manage your investment portfolio on your behalf as the Portfolio Manager. Your funds are held in an account of your name so you have direct ownership of the investments.
If you are interested in the investment service, contact us below.