On Creating An Investment Partnership

Aspects of mountaineering have commonality with those of investment. But where is the artificial adversity in a sound investment practice: answer - nowhere. Artificial adversity exists for the speculators of this world. Is that my future?

Intellectually there is only one path that makes sense to me for a sound future as an investor. The lessons from Graham, Buffett and Munger are timeless. Their principles sound, relevant and, possibly, implacable.

Somewhere in the human spirit is the strength to fight adversity, indeed the desire to fight adversity. This emotion drives men to distraction, it can be seen throughout love, life and the joy expressed in exploring this emotion is what draws men to mountains.

But the goal of sound investment is to find the path of least resistance. To take knowledge from the tree and pluck the lowest hanging fruits. Why seek adversity when it may lead to ruin?

Thus far I have made little inroads into my investment research. Stocks have risen and fallen, pages have been turned and potential investors have been met. But crystallised investment decisions have not been reached and enacted upon.

The track record is ticking away. I am still speculating for profit. Perhaps this is where my future lies. But speculation is no basis for taking on other's capital. Why is my story not that I have made investment gains in the past and will likely do so again in the future using the same strategy? Perhaps the strategy can be logically linked. No. Gains must come from principles that will be applied again in future.

The wall of doubt is there, but what is it made of? Not brick and, yet, not sugar. I have my doubters, my detractors, and perhaps I can thank them for making me stronger.

I asked a friend if he thought I had more chance of climbing the 6 classic North Faces of The Alps, or of becoming a successful investor with £20m under management. His response was that I was asking him to compare two very small probabilities!

But all human potential resides within each and every one of us, surely? If it's not impossible, then why not make it happen? There are hurdles to overcome, of course, but adversity just gives you a way to rise above and grow to meet the next challenge.

Creating goals, growing to meet these goals, helping others with their challenges, these are all things that inspire me.

The investment dream is taking shape. Slowly morphing out of the plasma of an unknown and uncertain future is a great and worthy reality. It seems wrong to have things just work. Perhaps low self-esteem keeps people from moving towards their true potentials. It's as if by telling yourself that the future is as malleable as you choose, that you can build it in your mind and shape it in your actions.

May 2010. Sherman Asset Management. The beginning.

To thine own self be true. Seek and ye shall find. The future is not written.

There are so many thoughts I have on the subject, so much going on in my head. Of quotations, past experiences and the experiences of others. I could probably write pages on just how I view the markets. Chapters on the movement of the tides, the pull of the moon, the way to catch the wave and then ride it in to shore.

Anyway, for now I've made my first pitch to a previously unknown potential investor. I've started reading Securities Analysis. I have stocks picked out to research further, and ideas to progress. The speculation continues, but it helps with my markets education. I still think the best risk-reward lies in Value Investing. To time it right, I want to be bottom fishing with the tide firmly out. After all, the best waves come with the moon full, an offshore morning breeze and the tide passing through the midway point.