We invest in stocks and real estates. First, we pride ourselves as a stockpicker at Allstone Capital. We are generalists with the bottom-up view of the investment landscape. In real estate, we emphasize on an important fact that we make money when we acquire real estate and not when we sell it.
e screen companies using proprietary criteria. After which, we focus our attention on the fundamentals of each companies. We only invest in companies that we understand and are confident in estimating their ‘Intrinsic Value’. In addition, we only buy when the market value is well below our in-house estimated ‘Intrinsic Value’. Our intention is to hold equities for the long term.
We have committed ourselves to these strategic principles below: (1) Preservation of capital by using the principle concept of ‘Margin of Safety’ ; (2) Concentrate our focus on the primary concept of ‘Intrinsic Value’ ; and (3) Avoid ‘Institutional Imperative’ by requiring a standard 15% minimum return on equity (ROE) as the firm objective investment criteria.
The above principles carry through in our real estate investment discipline as well. In addition, we emphasize on an important fact that we make money when we acquire real estate and not when we sell it. Allstone Capital takes a conservative approach to valuation. We do not buy property with a hopeful eye on appreciation. To us appreciation is icing on the cake – we can do without.
In addition, We value real estate according to our proprietary discounted cashflow analysis. We have a ‘no negative’ cashflow deal policy. In other words we do not have ‘alligator assets’ that exhaust your capital.
“Safeguard principal capital while earning a satisfactory target return of 15 percent.”
We take strict measures to make sure the risk is bearable on the downside prior to any consideration of the upside in both stock and real estate investments. We strive to safeguard principal capital while earning a satisfactory target return of 15 percent.