Pennybags

The Author:

I’m a long-term, value-oriented investor that is looking to generate healthy, long-term, risk-adjusted returns. I am using this site as a means to put my ideas on paper and track my progress towards achieving my goal of reaching financial independence as soon as possible. I will do this by investing in quality businesses that produce healthy cash flows at a reasonable margin of safety. I also look for special situations that present low-downside, high-upside potential with expected price catalysts. I believe that building a successful investment portfolio is not a black and white process – it is a constantly evolving balance of quantitative fundamental analysis and behavioral finance. I have analyzed my willingness and ability to take risk, developed a strategic asset allocation plan, and will make investment decisions by following both a top-down and bottom-up approach to investment analysis and portfolio management.

I enjoy learning about the investment strategies of successful investors. Some of my major influences include the likes of Benjamin Graham, Warren Buffet, Jeremy Grantham, Joel Greenblatt, Seth Klarmin, Peter Lynch, Monish Pabrai and Howard Marks, among many others. Furthermore, with the intentions of becoming an increasingly well-rounded investment professional, I successfully passed the CFA (Chartered Financial Analyst) exams and received my charter in 2017. I am on a continuous journey to improve my craft in the extremely unforgiving field of investing- one that is a mix of both art and science.

My investments:

The market is very unpredictable, thus my investment ideas vary depending on what discounts I perceive to be available. I take a holistic approach to building wealth and managing risk. My strategic asset allocation includes a reasonable cash balance, exposure to domestic and foreign markets, equities, fixed income, real-estate and commodities. I’m building out both passive and active investment holdings, as well as an allocation to both taxable and tax-exempt investment vehicles. I follow a “core-satellite” strategy in which a majority of my investments will be held in tax-exempt, passively invested index funds (core). I will look to build out-sized returns and robust cash flow in my actively managed equity portfolio (satellite).

A majority of my writing will be about the actively managed equity allocation, aka the satellite portfolio.  I recognize that with investing, time is key to success. Given my current age and ability to spend decades invested in the stock market I am willing to take more risk by being heavily overweight in riskier equity assets. I don’t limit my investment options and my equity holdings will vary from established large-caps purchased as reasonable prices to misunderstood/undiscovered small caps and special-situation securities that have attractive risk/return profiles with price catalysts. The portfolio is fairly concentrated and I will typically hold between 15-20 stocks.

The goal?

To create a recession-proof portfolio that provides adequate returns with a passive income stream that outpaces Inflation and the growth of my mandatory expenses (mortgage, healthcare, consumer debt, etc.) allowing me to reach full financial independence

Be sure to check back for updates and the details behind my decision making. Feel free to leave me questions/comments and I will do my best to respond to all. Thanks.