How to be in the 1% of investors who actually apply Warren Buffett’s investment philosophy ... not in the 99% who pretend they do
Examples of work we have done for clients
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Jordan - retired stockbroker.
When we met Jordan, he “couldn’t keep up with the markets anymore”. Was also concerned about the state of politics, the financial system and had a substantial amount of his own money in cash and gold which would comfortably see to his retirement. However, he really wanted to invest some of that for his grandchildren, so that it would compound tax-efficiently, long term. So he bought into Alphyn’s concentrated portfolio of deeply-researched, high-quality companies with great compounding power. He first invested in 2020. Then doubled his investment contribution in 2021, and increased it still further in 2022, taking advantage of lower-priced stocks in the aftermath of the bear market. |
Fred - professional investor.
Fred spent his career managing complex institutional hedge fund investment strategies. He was attracted to Alphyn Capital Management for 3 primary reasons: well reasoned and thoughtful approach, especially the concept of investing in successful public holding companies similar to Warren Buffett’s Berkshire Hathaway. 2) Alphyn’s reasonable fees 1% (v.s. most hedge funds that also charge performance fees), and 3) our long-term approach which is more tax efficient |
Max - real estate entrepreneur.
Max built considerable wealth investing in real estate in 3 different continents. While he is a very astute businessman, he never felt fully comfortable with the stock market. Knowing that he wanted to diversify some of his investments away from real estate he gave some of money to Alphyn Capital to invest with a long term view of preserving and growing his capital for the benefit of his children and grand children. He was attracted to the strong alignment of interest and careful management of money displayed by Alphyn. |
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If you …
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- Want along term focused portfolio that is less affected by overnight market swings
- Have read or watched videos about Warren Buffett, Charlie Munger, or other high-quality-compound investors, and thought, YESS, this strategy is for ME …
- Worry about your children’s and grandchildren’s financial futures, what with all the shenanigans playing out in London, NewYork, Washington, etc …
- You’re not sure how to go about it …
- You’d love to ride on the back of a seasoned fiduciary
- You knew, you knew, years ago, these inflation spikes were coming … yet you still felt powerless to do anything to protect the wealth you’ve built up …
- You really aren’t sure how to start investing in stocks, given the wild swings in the markets of late …
- You’ve seen some of the fees those investment advisors charge … while getting returns barely any better (and sometimes below) the index …
Then this is for you!
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It’s possible, it’s VERY possible ... to make very large returns on the stock market, even in this day and age of stock market volatility and Fed rate rises …
It’s even possible to do it on your own … investing in passive indexes, mutual funds, or individually picked stocks. We’ve seen it happen. Problem is, those returns only come to those who are:
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And there’s an even bigger problem …
Passive indexes, such as the S&P500 … prevent value discrimination.
That’s a fancy way of saying, When a gold nugget suddenly appears in front of them, the index fund manager cannot just pick it up. There is an “institutional imperative” to closely track an index. They are forced to buy every company in the index (regardless of individual company performance), and therefore provide little added value, despite their added cost.
And most individual investors … despite their vehement protestations to the contrary …
Passive indexes, such as the S&P500 … prevent value discrimination.
That’s a fancy way of saying, When a gold nugget suddenly appears in front of them, the index fund manager cannot just pick it up. There is an “institutional imperative” to closely track an index. They are forced to buy every company in the index (regardless of individual company performance), and therefore provide little added value, despite their added cost.
And most individual investors … despite their vehement protestations to the contrary …
- Lack the time or skill to research companies and business models deeply
- Have not been trained with the discipline to Stick. With. A. Strategy … when the stock price goes down. They are overcome by price anchoring, fear of loss, recency bias, or other mental biases …
- Sell at the worst possible times … which greatly impacts their wealth.
My core concept is that you need your portfolio managed by someone who focuses on investment management, and not a “general wealth manager.”
The average wealth manager is not an investment management specialist. They focus on the “financial planning” side but then put their customers into standardized “cookie cutter” portfolios that all look (and perform) the same.
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Let me back up a bit …My name is Samer Hakoura.
finance is all I’ve done for 25 years. Straight out of university, I learned how to do Mergers & Acquisitions, and IPOs at Deutsche Bank in London. worked on over $11bn of deals. Did my MBA at Wharton … Did I say it’s all I’ve done for 25 years? Not true, actually … It started a long time before that. My father had previously managed the £1 billion real estate portfolio of a sovereign wealth fund in the UK. I grew up watching him do the deals, and do them very proficiently. Watched him read the numbers, and read the people. Who to invest with, and who to avoid with a barge pole. He picked a few very smart, well-connected partners, and stuck to them like glue. It was an education that few people get. |
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I was incredibly fortunate.
After my MBA, I joined the family business. Helped out with a portfolio of real estate and private businesses. Built and sold a $70m revenue business, amongst others. For the better part of a decade, I kept my eyes peeled for ways to manage the family wealth in a way that:
Mid-level wealth managers, with the greatest of respect … did not, and do not, have the business and life experience to really add value to people in my position.
Big banks, on the other hand, are geared to manage ultra-big pots of wealth ($50-100MM+). Those numbers are so large, that all they have to do is not rock the boat.
But very few people and places are set up to manage wealth funds in the $5-15MM range with a view to preserving and growing it. I was going to have to find a way to do it myself.
And then something strange started happening.
People in similar situations to me … started asking me to manage their wealth as well.
So in 2019 … I registered as an investment advisor (with fiduciary duty) in to New York, and opened up to outside capital. Presto, Alphyn Capital Management Ltd (ACML) was born.
After my MBA, I joined the family business. Helped out with a portfolio of real estate and private businesses. Built and sold a $70m revenue business, amongst others. For the better part of a decade, I kept my eyes peeled for ways to manage the family wealth in a way that:
- Respected the lifetimes of hard work that went into it
- Preserved it
- Grew it for the long term
Mid-level wealth managers, with the greatest of respect … did not, and do not, have the business and life experience to really add value to people in my position.
Big banks, on the other hand, are geared to manage ultra-big pots of wealth ($50-100MM+). Those numbers are so large, that all they have to do is not rock the boat.
But very few people and places are set up to manage wealth funds in the $5-15MM range with a view to preserving and growing it. I was going to have to find a way to do it myself.
And then something strange started happening.
People in similar situations to me … started asking me to manage their wealth as well.
So in 2019 … I registered as an investment advisor (with fiduciary duty) in to New York, and opened up to outside capital. Presto, Alphyn Capital Management Ltd (ACML) was born.
Alphyn’s mission is simple: |
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Successful investors making outsized long-term returns have all learned The Same 5 Things:
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1. A small increase in return, over time, yields a big change in outcome
The typical way is: Think linearly. This isn’t so much the old way, as the default in human thinking. We’re not very good at thinking any way other than linearly. The new way? Think exponentially. Capital compounded for 30 years at 6% grows by almost 6x. At 10% by a little over 17x, and at 12% by almost 30x. In short, just a 6% return increase results in 5 times your return. It’s just basic math. 3. Invest only in a few deeply-researched companies The typical way is: Invest in anything underpriced. Watch it like a hawk. Sell when you reach your profit objective. Don’t get me wrong: There’s value in this strategy. I know people who have succeeded at it incredibly well. But they were trying to create wealth; I’m all about preserving it. They also were willing to sit in front of a computer many hours a day, watching the prices change by the minute. And they had the temperament to make snap buy/sell decisions, without beating themselves up when things didn’t go their way. I am neither of those, but more importantly … I don’t need to be. The new way? Not all businesses are created equal. Most are quite average, some are terrible, and a few are very good. A minute few are awesome and fantastically-run. Find those minute few, and invest a LOT in those. Ignore the others. 5. Buy & Hold, long-term, for great compounding The typical way is: Time the markets. Get excited and invest when everyone else is. Panic and sell when everyone else is. When you have too much cash on hand, invest in something, anything. Volatility is just a necessary evil. The new way?Buy and hold, for the (very) long-term. (Time measured in decades.) Take volatility, and take your human emotions and biases, out of the picture entirely. Don’t ignore stock market antics, but don’t pay them much heed either |
2. Buy fractional pieces of sturdy businesses
The typical way is: Speculate. Buy stocks. Is the stock underpriced? What’s the market done lately? What’s it going to do over the next week? As soon as the price goes up, sell, then wait for it to come back down again. Let greed be your master. The new way? Don’t buy stocks. Buy businesses. Buy good ideas, well implemented, by honest people, who are in it for the long haul. Think: Sturdy Castles with Moats. 4. Invest in Synthetic Leverage The typical way is: When someone hands you a natural advantage, always be prepared to lose it. Play safe. The new way?When you are handed a natural advantage … use it (wisely) before you lose it. This is my way of saying, Take a leaf out of Warren Buffett’s book. He leveraged GEICO’s (and other insurance companies’) insurance float to his advantage. This is Synthetic Leverage. Alphyn is not big enough to use Synthetic Leverage directly. We can, however, invest in companies that are! 
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Now at this stage, you may be thinking …
Why don’t I just … manage my retirement money myself? C’mon, how hard can it be?
There are 3 reasons why not:
1. You are not going to learn this in a week. Or a month. Or a year, or two.
There’s a reason for those tall skyscrapers in New York and Canary Wharf. It’s to house people who study the art and science of investing (and banking, and all that goes with it) full-time, for decades.
But YOU need to start investing your retirement money NOW.
2. It’s more than just one skill, it’s several
Researching stocks.
Researching the companies behind the stocks.
Studying the financial statements. (Know how to read those?) Studying the management teams. Think reading people is easy? Think again. There’s a reason Kenneth Lay and Bernie Madoff got away with their scandals for so long. People at the top of companies can be really, really good at hiding skeletons in closets.
Placing the investment. Assessing the returns, year after year. Deciding when to sell.
Each of these is a distinct skill. Are you going to learn them all quickly?
3. How will you time the markets? So that you buy low, sell high?
And avoid the inevitable market crashes? If you think that’s easy, ask anyone who worked in New York or London in 2008-2009. Or lived through 1929, if you can find one.
The problem with stock-trading your way to success is … You have to be able to time the markets. And few people, very few … are that smart. Not even Warren Buffett or Charlie Munger think they’re that smart. (Nor, I expect, do Messrs Rogers, Soros et al.)
The smartest investors successfully time the markets by taking time out of the equation.
If you try to learn investing on your own, late in life, when the risk of failure is high …… you are very likely to disappoint yourself, AND the family you seek to provide for.
You simply cannot succeed at investing in high-quality companies, for the long-term … like we can.
I have been investing family capital for the long term. I’ve built, honed and used methods the hard way, over a career in the capital markets.You are not going to develop the same abilities overnight. You just aren’t.
There’s a reason for those tall skyscrapers in New York and Canary Wharf. It’s to house people who study the art and science of investing (and banking, and all that goes with it) full-time, for decades.
But YOU need to start investing your retirement money NOW.
2. It’s more than just one skill, it’s several
Researching stocks.
Researching the companies behind the stocks.
Studying the financial statements. (Know how to read those?) Studying the management teams. Think reading people is easy? Think again. There’s a reason Kenneth Lay and Bernie Madoff got away with their scandals for so long. People at the top of companies can be really, really good at hiding skeletons in closets.
Placing the investment. Assessing the returns, year after year. Deciding when to sell.
Each of these is a distinct skill. Are you going to learn them all quickly?
3. How will you time the markets? So that you buy low, sell high?
And avoid the inevitable market crashes? If you think that’s easy, ask anyone who worked in New York or London in 2008-2009. Or lived through 1929, if you can find one.
The problem with stock-trading your way to success is … You have to be able to time the markets. And few people, very few … are that smart. Not even Warren Buffett or Charlie Munger think they’re that smart. (Nor, I expect, do Messrs Rogers, Soros et al.)
The smartest investors successfully time the markets by taking time out of the equation.
If you try to learn investing on your own, late in life, when the risk of failure is high …… you are very likely to disappoint yourself, AND the family you seek to provide for.
You simply cannot succeed at investing in high-quality companies, for the long-term … like we can.
I have been investing family capital for the long term. I’ve built, honed and used methods the hard way, over a career in the capital markets.You are not going to develop the same abilities overnight. You just aren’t.
Again this is for people who:
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Here’s what is going to happen when you work with us:
YOU WILL HAVE A SOLID INVESTMENT PLAN.
Behavioral biases that impair performance during times of stress … will be neutralized.
Your capital will be positioned to grow responsibly, long-term, through investments primarily in high-quality, well-managed companies with defensible competitive advantages.
You will have Synthetic Leverage.
You will have access to the capital you accrue, and income when you need it.
You will be leveraging the compound effect.
Behavioral biases that impair performance during times of stress … will be neutralized.
Your capital will be positioned to grow responsibly, long-term, through investments primarily in high-quality, well-managed companies with defensible competitive advantages.
You will have Synthetic Leverage.
You will have access to the capital you accrue, and income when you need it.
You will be leveraging the compound effect.
“So, how does it work?”Before, you picked stocks you hoped were good quality, at a low price, and hoped the price would rise as fast as possible, because you’re in a hurry to get rich.
But now … you’ve taken action that makes getting rich slowly … very probable.
Before, you were really just … speculating
But now … you’re not gambling at all, but buying fractions of companies of honest, talented, focused people.
Before, you had several skills that you had to master quickly, late in life, to have any chance of decent returns.
But now … none of those skills are necessary, because you’re investing in people who’ve already mastered them.
Before, you had to time the markets to have any chance of a decent return.
But now … bull and bear markets are less relevant.
Before, you were at the mercy of your emotions and inbuilt human biases, which sabotaged you whenever you had a decision to make.
But now … you’ve taken all those emotions and biases out of the equation.
Before, you had no natural advantages in the investing game.
But now … you are investing in real businesses, with real synthetic leverage
Before, you were limited by your own linear thinking.
But now … you are making investments that are based on exponential thinking.
Now, if you’re sure you really want to manage your retirement savings yourself …Monitoring the stock markets every hour …
Researching stocks and companies every day …
Making decisions to buy and sell every day …
You can.
You absolutely can.
BUT ... you will have sleepless nights …
AND you will kick yourself when you fail to capitalize on opportunities, or make decisions that lose money …
But now … you’ve taken action that makes getting rich slowly … very probable.
Before, you were really just … speculating
But now … you’re not gambling at all, but buying fractions of companies of honest, talented, focused people.
Before, you had several skills that you had to master quickly, late in life, to have any chance of decent returns.
But now … none of those skills are necessary, because you’re investing in people who’ve already mastered them.
Before, you had to time the markets to have any chance of a decent return.
But now … bull and bear markets are less relevant.
Before, you were at the mercy of your emotions and inbuilt human biases, which sabotaged you whenever you had a decision to make.
But now … you’ve taken all those emotions and biases out of the equation.
Before, you had no natural advantages in the investing game.
But now … you are investing in real businesses, with real synthetic leverage
Before, you were limited by your own linear thinking.
But now … you are making investments that are based on exponential thinking.
Now, if you’re sure you really want to manage your retirement savings yourself …Monitoring the stock markets every hour …
Researching stocks and companies every day …
Making decisions to buy and sell every day …
You can.
You absolutely can.
BUT ... you will have sleepless nights …
AND you will kick yourself when you fail to capitalize on opportunities, or make decisions that lose money …
Here is what you get with us:
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A seasoned investment manager, whose whole mission is to respect, preserve, and grow your capital.
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Instead of paying 1-2% per year (plus 15-20% for performance), like many hedge fund managers do …
We are offering this to you for a flat 1% of assets under management per year.
All you have to do is book a free, no-obligation introductory call, where we learn more about your unique financial circumstances and goals. We then come up with an investment plan to meet your needs.
If you choose to come aboard, we will send you:
We provide real time access and full transparency to your accounts, monthly reporting and a quarterly update on the market and investment performance.
The next step for you is to Book an Introductory Call
We are offering this to you for a flat 1% of assets under management per year.
All you have to do is book a free, no-obligation introductory call, where we learn more about your unique financial circumstances and goals. We then come up with an investment plan to meet your needs.
If you choose to come aboard, we will send you:
- An investment agreement
- A link to open a new account with Charles Schwab or Interactive Brokers (large and well known American multinational custodian and brokerage)
We provide real time access and full transparency to your accounts, monthly reporting and a quarterly update on the market and investment performance.
The next step for you is to Book an Introductory Call
Hear more about my investing background and philosophy in these interviews:
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