Our Investment Philosophy At recompound.id

Because nobody likes to get rich slow (but sure)

A Tale of 2 Stock Market Legends: Warren Buffet vs Jesse Livermore

In this post, we are not going to tell you the biography of these 2 guys because you can easily google it. We are going to highlight how they 2 differ in their investment philosophy. You can easily discern it from these 2 graphs below:

Net worth of Warren Buffet over time. He is 92 years strong and still living like a champ (at the time when this blog post was published). Notice the tiny growth of his portfolio in his 50s vs the monstrous growth in his 70s and 80s, using the power of compounding

Let’s compare it to Jesse’s :

Net worth of Jesse Livermore across time. Jesse committed suicide at the age of 63 with an automatic Colt pistol. Notice his net worth peaked incredibly abruptly and also plummeted not long after.

From this, we can conclude:

• Jesse is really good at accumulating wealth, but terrible at preserving wealth

• Warren is good at accumulating wealth, and also really good at preserving wealth

Recompound’s Investment Philosophy

By now you should know where we are heading:

We do not only want our customers to accumulate wealth. We also aim to consistently compound them with a relatively lower risk.

So, by the time they cannot work anymore, they can retire peacefully only from cashflow generated by their investment.

High Level Investment Methodology

The next question will then be, how do we achieve this with our customers? Our investment team picks stocks which:

• Pay dividend regularly

• Maintain considerable growth to their earnings

• Have dividend yield that is higher than risk free rate (bank deposit / government bonds)

• Have competent management

• Have various tailwinds to fuel their earnings growth

• Majority of shares are owned by the insiders. A big plus if they are buying back the stock

Most importantly, we monitor our selection of stocks regularly. This is to ensure that if there are one or more variables that could change our investment thesis for the stock, our customers will be informed in a timely manner.

To Conclude

We are committed to the long term growth of our customers’ portfolio. We are not afraid of rejecting potential clients who are asking us for quick gains because chances are, it would be difficult to retain wealth with that mindset afterwards (high risk high return).

Let’s achieve your financial independence slowly, but surely together with Recompound.