"The trick to investing is not to lose money. The losses ruin your compounding
rate & compounding is the magic of investing."
Aspirez Capital, a value investor, aims to achieve above market returns by blending its value investing strategy with insurance writing strategy. Aspirez Capital invests in undervalued well-managed companies where their earnings and dividends are expected to grow not only steadily but faster than inflation and the overall economy. Most of these companies have more than enough cash flow from operation to pay for dividends, special dividends once in a while, share buybacks, maintenance CAPEX, asset acquisitions and debt reduction throughout the market cycles. Aspirez Capital invests in such a company when its market price is less than its implied intrinsic value based on highly visible future earnings. By doing so, this investment offers a decent margin of safety. Aspirez Capital reasons that the market will eventually realize the true value of the company and will correct its course. In order to closely track all its investments inside out, Aspirez Capital does not typically invest in more than 8 companies at all times. Aspirez Capital often treats its investments as if it will never sell them unless the fundamentals of the companies deteriorate.
In addition, Aspirez Capital writes insurances on good quality equities, bonds, commodities, currencies and/or indices. In the capital market, those insurance contracts are called put options. The counterparties are required to make upfront cash payments to Aspirez Capital when the insurance contracts are initiated. The insurance float, which can be defined as the cash payments (premiums) made to Aspirez Capital less losses paid out, could be partially used to fund the purchase of its investments. If Aspirez Capital breaks even on insurance contracts, Aspirez Capital will have enjoyed the use of free money for a period time. Although it is far from a sure thing, Aspirez Capital expects to do better than break-even in the long run.
Overall, value investing plus insurance writing is the gist of the Aspirez Capital's investment strategy, which is believed to be an ultimate wealth compounding machine by many value investing legends.
THE BRAIN BEHIND THE STRATEGY
- Investment management experience within insurance and reinsurance industries
- Hardcore security analysis in Asia and North America
- Double majors in Actuarial science and Statistics with Honours at University of Toronto, #1 in Canada
- Mathematics Olympiad 1st Runner Up
- Chartered Financial Analyst (CFA)
- Mentored by other successful global value investors and senior management executives from various industries
- Proven track records
Focus | Discipline | Contrarian |
Transparency | Simplification | Lifelong Learning
*derived from actual broker's statements
*derived from actual broker's statements
(The actual inception was 2Q2006 / No proper record keeping prior to 2011 / Singapore broker was not able to provide statements prior to May 2011 /
Total return between 2Q2006 and May 2011 was estimated to be around flat as all the gains made from 2Q2006 to 2Q2008 were wiped out by the global financial crisis)
Quotes related to value investing
Success in investing doesn’t correlate with IQ once you’re above the level of 125. Once you have ordinary intelligence, what you need is the right temperament to distance yourself away from the herd.
Value investing is like bargain shopping. You buy a lot of pasta at 50% off because the supermarket messed up its inventory but avoid the strawberries that are on sale because they’re half rotten.
When the love for value investing is indescribable and unconditional, you can move mountains.
Simplicity is the ultimate sophistication.
Simplicity means the achievement of maximum effect with minimum means. Value investing means the achievement of maximum return with minimum risk.
You don't have to know every single damn thing on earth. You just have to do a few intelligent things in life.
The stock market is designed to transfer money from the active to the patient.
You never truly understand what value investing is all about until you detach yourself from money.
The biggest challenge faced by most value investors is trying to find joy in spending.
There are 2 ways not to outlive your life savings - (1) start investing now, or (2) start shortening your remaining life.
The trick to investing is not to lose money. The losses ruin your compounding rate and compounding is the magic of investing.
A value investor is the most optimistic person you can find even on earth if everyone else has lost faith in humanity.
A market meltdown is as good as a winning lottery ticket for a well prepared contrarian value investor.
When a Wall Street guy speaks, I'm half asleep. When a value guy speaks, I'm fully awake.
Value investing is a lifetime commitment. If you are not ready to commit, don't even bother starting it.
- Past performance is not an indication of future performance
- This is not a solicitation for business
Copyright November 2014