The “Masters of the Universe” Portfolio Using Publicly Available Information to Make Informed Investment Decisions You can follow my portfolio on NotesOffTheMargin.com and follow me on twitter: @peteweishaupt Disclaimer: Information in this eBook is based on my personal opinion and experience. This eBook is not intended as professional advice. None of the information contained in this eBook constitutes a recommendation for any particular security, portfolio of securities, transaction, or investment strategy is suitable for any specific person. Please seek your own professional advisor who can properly review your particular circumstances. The author disclaims any liability, loss, or risk taken by individuals who directly or indirectly act on the information contained herein. All readers must accept full responsibility for their use of this material Table of Contents • The Beginning • Part 1 – Let’s get started • Part 2 – What a good company looks like • Part 3 – Research – investing with the masters • Part 4 – The Filter/Checklist • Part 5 – Valuation: Proprietary B Ratio/FCF Yield/Private Equity/Leveraged Buyout • Part 6 – The Secret to Getting Very Rich • Web Resources In part one I lay out what I’ve learned from the investment style of Terry Smith of Fundsmith. Since discovering Fundsmith, I’ve combined their investment style with other “Masters of the Universe” investors and distilled some of the characteristics in the stocks they choose. I profile their investments to serve as a guide for picking my own stocks. From this profile, I’ve developed a Filter and “Checklist”. Part two lays out what a good company looks like in the Fundsmith Universe. Part three covers how to research and invest with “Masters of the Universe” on your own. Part four lays out my framework for investing using Filters and Checklists. In part five I discuss how I value a company and my own proprietary B-Ratio, which I use when trying to decide if a certain stock is a good
uy at a particular price. Part six covers how the ability to raise prices can make an Entrepreneur and/or Investor very rich. The Beginning I discovered Terry Smith from Fundsmith in early 2015 while researching various investment strategies. Mr. Smith is touted in the press as the "the new Warren Buffett". I was attracted to his no-nonsense business approach to investing. Best of all, he eats his own cooking. I carry his strategy in my pocket on a 3x5 card: • Don't over diversify • Don't trade • Only own good companies • Buy them at a reasonable price • Finally, DO NOTHING Many of his investment insights can be viewed on the Fundsmith YouTube channel. You may be asking "Why don't you just buy his fund?" I would if I could. (Actually I sort of can through his SEC 13 HR filings) First, I'm across the pond in the US, so I can't invest via the UK website. Second, you can buy his fund in the US, but you need to be a 'Qualified Investor', which I'm not. Third, I enjoy researching and analyzing stocks on my own.