A value-based investment management service for the 99%
If you are shopping for common stocks, choose them the way you would buy groceries, not the way you would buy perfume - Benjamin Graham
It takes 20 years to build a reputation and 5 minutes to ruin it. If you think about that, you’ll do things differently – Warren BuffettBluestars Capital (BCAP) is an online boutique investment management entity established in 2020 to provide trusted discretionary investment management services for individuals and companies. Our focus is on delivering long-term value for our partners through a disciplined value approach and adherence to our principles. BCAP was founded and managed by Zuhdi Zubair. He holds an Investment Advisor certification from the Colombo Stock Exchange and an MBA from Australian Institute of Business, in addition to investment management experience since 2005.
We govern ourselves based on the following principles:
- To assist all those who are unable to invest on their own due to reasons such as, lack of investing knowledge, fear, trust and reliability
- We will communicate with you with transparency and in a straightforward manner
- We invest alongside our partners putting our own money in the same investments
- We will look at risk before return and will ignore high-risk opportunities regardless of potential payoffs
- We will strive to manage your capital to maximize long-term results and will gladly accept “bumpier” short-term results to achieve them
Given the above, one must also be aware that investments by their nature are volatile and can lose a portion or all of its value due to uncontrollable/unforeseen events such as economic factors, expropriation, bankruptcy, fraud etc. Such risks can only be mitigated by adopting a disciplined and suitable long-term approach.
The single greatest edge an investor can have is a long-term orientation – Seth Klarman
Our strategy rests upon the following concepts:
- Intrinsic Value - We believe a stock’s worth is best determined by its underlying business economics, not by what others are willing to pay in the short-term
- Margin of Safety - We determine an investment’s margin of safety by the combination of the quality of the underlying company and the discount from a conservative appraisal of intrinsic value offered by the price
- Long term Time Horizon - We seek to invest for the long term and will sell only when near or at intrinsic value is reached or when the gains justify selling, and therefore we are not unduly influenced by short term price fluctuations
- Patience and Disciplined Execution - The market occasionally misprices securities for behavioral reasons. By remaining disciplined, we take advantage of the market’s mistakes while guarding against mistakes of our own
- Risk - is primarily managed through zero or minimal levels of debt, sufficient margin of safety, suitable diversification and an understanding the fundamentals of the company
Most of the time, the successful execution of our strategy requires us to act against the crowd. Our edge over other market participants is having a much longer investment horizon, better temperament, and the investment discipline to stay the course, especially in down and volatile markets.
Our process to implement our strategy focuses on the following:
- Assessment of company quality
- Analysis of key factors
Investment must always consider the price as well as the quality of the security - Benjamin Graham
As for our fee, we keep it simple at a fixed 25% on the profits made on an investment. That’s it!
However, please note that there is a fixed 1.12% brokerage fee that is charged by the brokerage for each transaction. This rate is determined by the SEC (Securities Exchange Commission) and we have no control over it. We do not receive any commission from the brokerage firm or any third party. Thus, our only source of income will be the fixed rate fee paid by you as mentioned above.
People calculate too much and think too little – Charlie Munger