MAN11 CAPITAL launched its portfolio in March 2018 with R$31,020.00.
A little before that, when I first envisioned creating a portfolio, I decided to look at it not as a common stock portfolio but as the beginning of an empire. It sounds silly, I know, but many of the great investors did exactly the same thing. Little money, a lot of confidence in performance, and a different vision from those who find themselves in that situation.
Buffett, Marks, Dalio, Thorp and many others started small, but looked at that small pile as if it were just the beginning of something much bigger — and therefore, it had to be treated as such.
This kind of approach makes you more responsible with it. You start treating your portfolio and your performance like Michelangelo's Sistine Chapel frescoes.
Getting back on track — it's pretty clear that given the work of building your masterpiece, you'll take care with every brushstroke, meaning every buy or sell decision. You don't want some damn stain on the face of your Mona Lisa! Mistakes happen and can be corrected during the painting, but one big mistake can ruin it.
When Buffett decided in 1983 that Berkshire Hathaway would indeed be his masterpiece, the value he invested per share was just $32.45, and today — after many brushstrokes — each share is worth $380,000.
Suck on that, Michelangelo!
Taking advantage of this beautiful Friday, I'm here to make you a proposal!
How about wiping the slate clean and starting to build your empire right now?
Set aside a specific account or two, and dedicate them solely to building your empire — your Berkshire Hathaway.
Pay attention, because every decision you make will influence the final canvas, so it's worth focusing on doing what you know how to do — and of course, you can't keep tearing pieces out of it for any old reason. So it should only grow, carefully, but only grow.
It's worth mentioning here that Buffett took this part of not tearing chunks out of his masterpiece so seriously that he once found himself financially strapped — due to his low salary at Berkshire and a sudden increase in personal expenses. This is one part of his life the "buy and hold forever" crowd never talks about: in a personal account, he made over 3 million dollars in a short period of time, SPECULATING in various markets. I'll save that story for another letter.
Today, MAN11 already surpasses seven figures, diversified across various asset classes, consistently beating its benchmark, with a simple and solid investment philosophy.
At the peak of my 33 years of age, it was all I had: R$12.80.
João Homem
