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 2019 to provide trusted discretionary investment management services for individuals and companies. Our current focus is on the local listed public companies. We are registration pending by the Provincial Department of Business Names Registration, Western Province.
BCAP is founded and managed by its Chief Investment Officer, 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.
The value-oriented investment methodology adopted at BCAP are aimed at creating wealth over time, while managing risk through primarily protection of capital, suitable diversification and suitable stock picking. This approach helps us to focus to build trust with our client partners.
The big money is not in the buying and the selling, but in the waiting – Charlie Munger
We govern ourselves based on the following principles:
- To help and assist all those who are unable to invest on their own due to reasons such as lack of investing knowledge, fear, trust and reliability
- There is no minimum amount to start investing
- We will communicate with you with transparency
- We invest our own money in the same funds our clients have their money in, so that our interests are aligned
- 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 guiding points is to invest in great businesses for the long term that have durable economic moats (advantages), favorable customer economics, consistent financial results, high and stable returns on capital, strong cash flow generation, able and shareholder-oriented managements, a conservative capital structure, strong track record of rational capital allocation and attractive capital redeployment opportunities.
Our view is the long term, longer than generally most. Major benefits of long-term investment are the reduction of trading and related costs which contributes to better returns in the long term and more time for the investment to grow.
A great business at a fair price is superior to a fair business at a great price – Charlie Munger
We buy securities that are trading at discounts to its (intrinsic) value and which gives us a satisfactory margin of safety on our investment. We place our own capital into such opportunities and continue to own them as long as these conditions are satisfied.
Over the long term, a company’s share price will ultimately be guided by its intrinsic value, and therefore we are not unduly influenced by short term price fluctuations. Risk (capital loss in particular) is managed through suitable diversification and understanding the fundamentals of the company.
Investment must always consider the price as well as the quality of the security - Benjamin Graham
We are patient and disciplined. We don't view ourselves as investing in little pieces of electronic records/paper that trade in markets. Behind every stock there is a real business and we, the shareholders, collectively own that business. This mental framework drives our decision-making process.
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. Or in the words of Warren Buffett:
Be fearful when others are greedy. Be greedy when others are fearful
As for dividends, BCAP does not distribute dividends it receives. Instead, it will accumulate it and use it to re-invest in the same or other opportunities available in the market at the time.
The BCAP Agreement below, once submitted is considered legal and confirmation that you have understood and is willingly entering in to an agreement with BCAP for the purpose of BCAP managing your funds on a discretionary basis, which we will undertake to perform to the best of our capabilities, intentions and transparency for the mutual benefit of both sides. The Agreement contains the basic required information for clients, instructions and terms.
Please click on the BCAP Agreement icon below, fill the Agreement, upload all required documents, and then click on ‘Submit’
We will confirm receipt of the Agreement, only if all required information/documents are provided/uploaded.