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Weighted Research aims to unearth investing gems around the world. The philosophy is to find asymmetric risk/reward investment opportunities.

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The articles produced in our free newsletter is based on companies that is interesting and you can get a feel on what you would be getting for the premium newsletter.

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If your idea is to see how I build a portfolio of 9 positions to grow for the long term (3 - 5 years), then do subscribe to the premium newsletter.

You will get to see our portfolio and a full breakdown on the most current ideas. The aim is to publish 2 - 3 actionable ideas every year.  

The aim of the portfolio is to compound at 24% per year. With returns from the stock market at all time high, we think it is a tough mountain to scale.

The portfolio will be maintain for at least 5 years from 2020 and we will consolidate and review the results.

Each strategy was funded with USD 250,000 at different period during 2020 and 2021. The returns highlighted would be on a compounded basis.

Our aim is to generate absolute returns.

  1. Special Strategy (Special Situation)

Audience: Professional investors

Type: Companies going through possible Special Situation

Weighting: Up to USD 100,000

Our special situation investing style relies on imagination (aka human). That also means that the investment could be pretty much anything under the universe where an event is happening (spinoff, margin improvement, etc.). There is also a timeline for that event to happen which should result in the re-evaluation of the company triggering a share price increase.

Once the share price is up or the event had played out, we are out with our returns.

This position may grow into a unrecognised growth position and we may just swap them into the Super Portfolio.

  1. Statistical Strategy (Graham type)

Audience: Mainly for the retail investors

Type: Mainly small cap and nano-cap

Weighting: Tiny - small (around USD 10,000)

Alright, we know that we had indicated that we will stay out of graham type situation. But we continue to buy and sell them… It is too ingrained in us not to do so. We will hear of an idea, look at the balance sheet and immediately knew that is a bargain. Sometimes, the position is being flag in our computer system and we knew we need to take action!

What we are doing here differently is that a catalyst is required going forward. The catalyst could be new shareholders, buyback, etc. The catalyst may not re-rate the price but it provide us some comfort in maintaining a position we may not know very well.

Once the market re-rate for any reason, or maybe just that the market had decided to go up, we will be out of the position. The position may grow into a unrecognised growth position and we may just swap them into the Super Portfolio.

  1. Super Strategy (Unrecognised Growth)

Audience: For all

Type: All type

Weighting: All sizes up to USD 100,000

Unrecognised growth will be base on the company which is supposed to be growing fast but is unrecognised by the market. They could be loss making, have a huge TAM, etc. They have something which is within our mental tookkit that we can understand.

Akin this to VC investing in the stock market. We had worked with many startups in the past and hope to put that knowledge to work. The buying and holding and praying and finally selling if growth did not materialise is what this strategy espouses.

  1. Sustainable Strategy (Recognised Growth)

Audience: For all

Type: All type

Weighting: All sizes up to USD 100,000

Recognised growth will be well established companies which we can see into the future with. They are names which everyone knows and should be fairly valued. This portfolio should generate adequate returns over the long term as winning companies continue to win.

This should look familiar to what FundSmith is doing. Buying good companies at reasonable valuation and hold forever. If something better comes along, we will exit our least desirable position to buy that.

We had find the writing process pretty useful so far. The discipline to document our thoughts in a systematic manner is invaluable.

For readers, we will be highlighting the type of concept with the naming of

  • Special,

  • Statistical

  • Super

  • Sustainable

as the header of the newsletter.

You can choose to read or skip by just looking at the title saving you valuable time. We know it is a pain to clear email and now we are enabling you to decide quickly.

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From www.weightedresearch.com