Stewardship of a Value Investor

About Me

 

CMA_8533editedI have been investing since 2006. My personal investing journey was started from the wrong side of the fence. As the result, at that time my investment yielded disastrous results. I was so naive that time, but I keep pushing through. In 2010, I started to invest in Indonesia market and made a proper segregation in the accounts I managed. There was not a lot of progress for the first 2 years. However, the breakthrough came when I was committed to pursue value investing method. Since then, not only that I am able to integrate my vocation with my personal faith, I also perform much better.

I am currently working on structuring my own fund, which is not easy especially when I do not have background in the industry (I do enjoy the journey). I sometimes do ad-hoc consulting for families who are looking for different perspectives in looking at their portfolios / wealth management strategy.

I am also a Christian Apologist. My main pursuit is to help people integrate their vocation better with their faith, especially in the financial field. I also spend an equal amount of time helping people to think about their faiths and discussing with people who have questions, doubts, and struggles in their spiritual journey.

It is a long journey, and I don’t pretend that I have all the answers I am looking for. However, I want to dedicate my insight to help ordinary people like myself in their investment and spiritual journey, so that they can become a better impact maker in the society.

I am also spending part of my time as angel investors. In Indonesia, I am a proud to be associated with Brodo (www.bro.do).

I am open to criticism and inputs, hopefully I will also learn through others here.

Why Value Investing?

There are many approach to investing. Value investing is not most exciting method to pursue. It is dead boring and requires long time discipline. I also believe that it is not the method that generates the highest return. If you look at here and here, you will find two firms whom I believe to deliver performance unseen in the Value space.

Why then, value investing?
1. It is a proven method
There are reasons why Value works. These reasons are based on unchanging factors which stay true. As long as these facts stays true, then an investing approach based on those facts will work. I believe there are two proven methodologies over long term. They are value and momentum (Daniel and Titman, 1999). I believe that Value works because it is grounded in the understanding of mean reversal and human’s irrational behavior. These two facts will stay true for a looooong time.

2. Holding power
Value is a method that works wonderfully if we have holding power. To succeed in investing, we need to be right, and sit tight (Livermore). we can be right in finding the right stock, but if we are wrong in the timing, we will still get burnt. However, if we have a long enough time horizon/holding power, we can get wrong and still not lose money.

3. Accessible

Value is easy in theory. The difficult part is the discipline and risk management. This method is a method that is accessible to laypeople. The reason is because in Value investing, we can choose you own battle. We do not need to be smarter and faster than the guy on the other end. When we know ourselves, we can choose to take appropriate level of risk. The most important part of investing is not about the outside (valuation, macro, timing, etc). The things that are inside of us are much more important. We need to know what we don’t know, what risk we can’t afford to take, and be satisfied with the return that we get given the risk we take.

4. Alignment with the development of soul and human flourishing
I am a Christian. As a Christian, I generally try to seek Kingdom value in what I do. Other than profit and return, this is another important parameter. Value investing tries to recognize value unseen in the balance sheet. Things such as reputation, brand, and culture do not appear in the company balance sheet. This does not mean they are unimportant. The same way, I believe that as Christian, I need to be aware other values that are added, such as good corporate governance and business ethics. I also believes that Value enable me to develop my own soul in a healthy way. I cannot grow as a whole person when my investing principles are about following the crowd, ignoring truths, and having short-term time horizon. Instead, my soul develops healthier by learning about myself, finding out the truths, having the conviction, gathering the strength to stand by it, and focusing on the long-term. I find this to be better aligned with my faith, which requires me to know that I am a sinner, that I need a Savior, that Jesus is the true Son of God, that I have the conviction, that I need stand by it despite the majority of the world is mocking that idea, and that the time horizon is eternity.

5. Ecclesiastes 1
Nothing on this earth has eternal value. Value Investing is not exempt. In fact, in new world to come, while a pianist will still be a pianist, an architect will still be an architect, I would need to find another job, since economy will be perfect, human will be perfect, and there is no blood in the street (Value Investors thrive only when there are bloods on the street). However, I might still be able to translate my activity to the new world, which is the skill of capital allocation. I am not sure if there are capital to be directed at all, but it is more possible to have capital allocation needs than to have high-frequency trading or momentum trading or quant trading needs (sorry to my quant friends XD).


What I do concerning finance

1. General Portfolio Advisory
2. Fund Management
3. Wealth Management Strategy
4. Angel Investing

My Purpose
I want to help people to be Christians who do not separate their faiths with the rest of their lives
I want to educate people on the Stewardship, specifically on Financial stewardship
I want to make an impact as an investor by allocating capital to quality companies who are committed to good governance, capital stewardship, and value creation
I want to meet people who are similarly minded who have the courage to stand for integrity, virtues, and wisdom
I am looking for private business that is looking for external investor (both strategic and complete buyout)

Blessings,

Chris Angkasa
You can reach me at chris[at]sutatama.com

 

Analyst Vacancy

I am looking for analyst that can help me in research and generating idea.

Key Tasks:
– Idea Generation
– Visits to management
– Research and Due Diligence
– Monitoring existing investments

Requirement:
– Passion in value investing
– Completed Security Analysis by Ben Graham
– Able to converse in English
– Ability to learn quickly and read extensively
– Independent thinking and some level of investment experience

Preferrably, but not required:
– Currently pursuing or already have CFA
– From reputable university
– Less than two years experience

If you think you would love to work with me and you have what it takes, I would love to hear from you. You can drop me an email, and attach any sample of your writeup. Or, you can do another writeup based on the following guidelines:
“In 2,500 words or less, make a case for your best investment idea. Present it and back it by research and analysis.”

Sample Structure:
Introduction, Financials, Major Risks, Investment Thesis, Recommendation