Editors' Note: This article is meant to introduce All Weather Fund, a new Marketplace service by Marcello Pinto.
My name is Marcello Pinto and I am a classic value investor. I have always invested, since an extremely young age. I had an immense passion for business growing up, and I knew that I would spend the rest of my life involved in the stock market one way or another.
I bought my first stock at the age of 6 with family money: Disney (DIS) figuring that other children around the world would be just as excited about "The Lion King" as I was. I subsequently bought Nike (NKE) and Kellogg's (K) as well. At the age of 10, my mother made a substantial investment on my behalf, Telkom which was basically the monopoly telephone provider in South Africa (we lived in South Africa back then). The shares soared. We made more money than I ever thought possible, and from that day onwards, I was hooked.
I read everything about investment possible and gathered as much money as I could, by working odd jobs and begging my relatives (I was always more successful begging for money than working for it). My big break came when I bought shares in NetEase (NTES). I invested around $20,000 at an average price of around $9 a share. Since then, I've never sold a share and have constantly increased my stake, purchasing for as much as $260 a share, two years ago. After my initial purchase, NetEase soared in value and this gave me the confidence I needed to pursue a career as an investor.
I always hustled for money, never really taking a traditional path (let's face it working is too much... work). I played poker online and then started a small business. This allowed me to cobble together a couple of hundred thousand, which I used to get started in my fund. Following a Master of Political Economy at the University of Sydney, I also worked at a couple of big investment banks, but I never really wanted to work for anyone else. So, I started raising more money and continued growing my fund. Obviously, the people who backed me took a massive leap of faith and believed in me. I'm happy they did. They are too.
In addition to working on my fund, I also started a large vending machine business here in Sydney, where I live. I commenced mid-last year with two machines and since then, expanded to a couple of hundred. I learnt so much from scaling and managing a business, versus simply being a passive investor. I really think this has rounded me for investment success.
Now, I'm bringing that experience to my new Marketplace service, the All Weather Fund.
Here is what you can expect from All Weather Fund
Very few investment ideas.
I believe that there are way too many investment recommendations out there and far too few people actually understand when a stock is a buy. I believe I do. My goal is not to give you as many ideas as possible, but rather the best ones available. I'll provide you with a very concentrated portfolio of only my highest conviction picks.
Here is what you should expect from my service:
- A model portfolio with my best ideas
- Detailed investment reports on companies that I believe are worth following
- A monthly newsletter
- Actionable ideas
- Special situation investments which are hard to find
- Investment lessons and tips
My service can be found here and you'll gain access to my model portfolio and actionable ideas straight away. I'll be your portfolio manager and will ensure that you can start investing with confidence.
My investment strategy
I recommend high quality businesses that have strong competitive advantages and earn high returns on equity. I believe that this is the best way to compound your money over the long-term.
Here is my investment philosophy:
- Emphasis on purchasing businesses on the basis of their intrinsic value (earning power) that I consider to be undervalued by at least 30%.
- Emphasis on selecting businesses which have strong competitive positions, low debt levels and offer an attractive risk/reward propositions.
- Selecting firms on the basis of a rigorous analysis. I will not select stocks on the basis of short-term profitability considerations or their popularity. Rather, investments will be selected on the basis of merit.
- Focus on investing in companies which are ethical and have honest management. We intend to operate in a manner that is completely compliant with the law and the highest moral standards.
- I invest based on the attractiveness of future returns
- I don't speculate. I won’t recommend any asset whose intrinsic value cannot be calculated or must be ‘guessed’. Instead I will focus on investments which offer the ability to compound over time, rather than seeking short-term gains or get rich quick schemes.
- I won’t attempt to ‘time-markets’. Instead I recommend businesses I believe to be attractively valued, regardless of our stage in the economic cycle.
- I will share my investment strategy with you. I plan to be completely transparent and I will tell you exactly why I make our investments.
- I will select investments on the basis of absolute returns.
Who should sign up
You should sign up to this marketplace if you are a value driven investor. The portfolio will not be a quick rich play, but rather a fundamental analysis on businesses, valued conservatively and recommended only my highest conviction ideas. This way, you will profit regardless of the economic climate.
Moreover, you should sign up if you are interested in a service aimed at achieving returns that are not correlated with the market.
I'm offering a special signup discount for the first month of my launch. You will have an annual membership that costs just $300 compared to the regular price of $50 a month (worth $600/year).
Believe me when I say that the value you will receive from the marketplace will far exceed the monetary cost. With just one of my ideas, you'll earn over one hundred times your investment.
Remember, it's easy to pick the most popular stocks on Wall Street. It's much harder to take a contrarian approach and pick the most profitable stocks, that often fly way under the radar.
Learn more about my investment philosophy in the following articles:
- Chipotle is going to the top of the food chain (Stock up 60% plus since)
I effectively illustrated that the correct way to value a company is not based on the price to earnings ratio, its popularity on Seeking Alpha or Wall Street, but the fundamental earning power of the business over the long term.
To many, it remains a mystery why the stock has appreciated so much since my article, but if you understand valuation, you'll know exactly why.
- Monsanto represents the best arbitrage play in the market (Deal closed the following week)
- Kraft Heinz is Struggling (Stock down 40% since)
- General Mills, Another Struggling packaged foods company
Thank you to Seeking Alpha for making this possible. I have gone from an avid reader, to contributor and now Marketplace Author. I look forward to the future!
Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.