This article is excerpted from a letter authored by Samer Hakoura, principal at Alphyn Capital Management, based in New York.
I look for great public companies that have the power to endure, with long runways to grow through reinvesting cash flows at high rates of return, run by talented and aligned operators. This unpacks as follows.
At its most fundamental level, investing is about paying an amount of money today with the expectation of receiving a future stream of cash flows who’s present value, when discounted at an appropriate rate, exceeds the amount paid today. The greater the difference, the higher the Margin of Safety and the better the profit. Very basic, but I think the point frequently gets lost in unnecessary complexity, especially when prices react so vigorously to general economic news and quarterly results.
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About The Author: Samer Hakoura
Prior to founding Alphyn Capital Management, Samer worked at his family's investment office in London and then managed various family investments in the Turks & Caicos which included the country's main supermarket chain, where he developed processes and systems to enable rapid expansion of the business, a waste management business that won the national recycling contract, a marina, and several real estate developments. Samer applies lessons from managing those businesses to his selection of attractive businesses in the public markets.
Samer started his career at Deutsche Bank in London, taking part in over $11 billion in M&A and financing transactions. Samer holds an MBA from the Wharton School of Business and an MCHEM from Oxford University.
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