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𝘼𝘽𝙊𝙐𝙏 𝙈𝙀 Qualified accountant with big4 background and value investor. My first investment operation goes back to 2013, when I bought A2A.MI stock and later sold it with 100% profit. Later I made a number of loss-making deals, and overall results could have been described as average, until I learned about "value" investing. Since 2018 I manage thord party capital and achieved over 30% average annual return. 𝙄𝙉𝙑𝙀𝙎𝙏𝙄𝙉𝙂 𝙋𝙍𝙄𝙉𝘾𝙄𝙋𝙇𝙀𝙎 Main strategy of AtlasCapital is investing in undervalued stocks with economic moat: companies earning consistently good returns on capital due to sustainable competitive advantages. The term "moat" was originally coined by Warren Buffet who said: "It is far better to invest in wonderful companies at fair prices, than in fair companies at wonderful prices." What does it actually mean? It's much better to pay a fair price for a company earning far above it's cost of capital (companies with economic moat), instead of buying at cheap price low quality companies. I wish to go beyond that - by purchasing wonderful companies at wonderful prices. Market price and intrinsic value often follow very different paths, but eventually they meet. The wider the difference between the two - the higher our margin of safety. My task is to find such discrepancies. While the goal is to exceed market return over long-term by at least 5%, in no sense is any rate of return guaranteed to copiers. Whether I do a good job or a poor job is not to be measured by whether we are plus or minus for the year. It is instead to be measured against the general experience in securities as measured by the S&P index. If our record is better than that of this yardstick, I consider it a good year whether we are plus or minus. If I do poorer, I deserve no compliment. While I much prefer a five-year test, I feel three years is an absolute minimum for judging performance. It takes time for market price to adjust to intrinsic value. Let me express few thoughts about risk. In finance, risk refers to the potential financial loss inherent in an investment decision. In general, as investment risks rise, investors seek higher returns to compensate themselves for taking such risks. Also, diversification plays key role in determining risk. S&P 500 is very well diversified portfolio, however, if you invest in ETF tracking this index, the risk will be low, but you won’t have any chance to beat the market. At AtlasCapital we are following a policy regarding diversification which differs markedly from that of practically all public investment operations. I don’t mind to have concentrated portfolio with 8-10 positions instead of wide diversification. While I do agree that there is sometimes high uncertainty (don’t confuse uncertainty with risk) in any individual position, these uncertainties compensate each other when combined in one portfolio, making the whole portfolio less uncertain. Nevertheless, there are reasons to think that potential financial loss inherent in our portfolio is lower than that of S&P index. Stated simply, we are betting against efficient-market hypothesis, widely taught at famous business schools. It is a certainty that we will have years when the performance is poorer, perhaps substantially so, than the S&P. Sometimes results will be volatile, but I would rather earn a lumpy 15% over time than a smooth 12%. Because of this expected volatility and high cost, leverage will not be employed. I have no interest in any activity that could pose the slightest threat to our wellbeing. If any three-year or longer period produces poor results, we all should start looking around for other places to have our money. 𝘾𝙊𝙋𝙄𝙀𝙍'𝙎 𝙂𝙐𝙄𝘿𝙀: 1. Holding period 3 years or more. It is probable that portfolio will record a temporary drawdown of 25% or more at some point. If you are not prepared psychologically and financially to withstand such period – you should not invest 2. Do not set stop loss. 3. I am not in the business of predicting general stock market or business fluctuations. If you think I can do this, or think it is essential to an investment program, you should not invest P.S. Portfolio name is dedicated to the wonderful book "Atlas Shrugged" by Ayn Rand. Cordially, Vlad.