Bamboo Value Investing
In order to achieve consistent investment results, Capital Dynamics is guided by Benjamin Graham's counsel.
“Investing in a stock market is most intelligent when it is most business-like”
Long Term Focus
Capital Dynamics manages clients’ assets based on the eclectic value investing philosophy that was formulated and developed by Tan Teng Boo. Based on the investing principles of Benjamin Graham, Warren Buffett and Philip Fisher, adaptations and modifications have been made to match the type of markets and economies in which we invest in. A good way to understand his eclectic value investing philosophy is to use the analogy of the bamboo.
The bamboo has tensile strength greater than steel and can withstand compression better than concrete. Such attributes of bamboo are essential in keeping the plant, which can grow up to 60 metres in height but is only as wide at the base as the very top, from falling over and making it to be able to bend in the wind without breaking. The bamboo has superb environmental qualities, which are largely based on the sustainability merits of the plant.
Capital Dynamics appreciates that conventional value investing may be inadequate in the context of investing in developing countries where established institutions may be lacking and market forces not significant or are in an embryonic stage. As such, it adapts its value investing approach by considering factors like political and macro-economic structures. Despite being versatile in analysing companies with diverse backgrounds and in differing environment, Capital Dynamics takes the time-tested value investing approach by drawing on the underlying intrinsic value of a company and the principle of margin of safety as its core investment philosophy.
The objective of Capital Dynamics is to seek capital appreciation while reducing the margin of error when investing. This is achieved with a rigorous, innovative and well defined value investing approach. Our eclectic Bamboo investment philosophy is unique, and has enabled us to generate sustained superior returns.