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Investment tips to remember this 2022

Robin Harris a pass

Whilst our key focus on corporate services, here at A-Pass we are lucky to count Capricorn Capital as our key investor. A global family office, Capricorn Capital has invested in numerous businesses around the world, from Nandos (F&B) to Clientele (insurance), and in 2019, A-Pass Hong Kong.

Robin Harris, Managing Director of Capricorn Capital Hong Kong, was the key driver behind the deal, and continues to work closely with A-Pass founder Andrew Burgin.

With years of investment experience behind him, today Robin shares his thoughts on best practices in investment.

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In his words, many lessons of private investment strategy, can be applied to conventional investing in public markets. These include:

1. Investors tend to see past market declines as opportunities but future market declines as a risk.

So much of successful investing is your ability to think long term, and the ability to think long term requires bridging the psychological gap between what’s uncomfortable today and what’s likely to benefit tomorrow.

2. “I don’t know” are the three most underused investing words.

No one knows what the market will do next month or next year. But professionals can’t charge a consulting fee for humility, so there are legions of people who are happy to tell you that they know. And if that guy on TV knows, why can’t I know as well? It’s a dangerous cycle. Admitting that you don’t know what the market will do next does not make you dumb. It makes you in touch with the realities of a capitalist system whose two-steps-forward-one-step-back journey is driven by the unforeseen, the unexpected.

3. There are no points awarded for difficulty.

This isn’t true in most fields, where results typically scale with the amount of effort put in. But good investing results are often about stripping away counterproductive habits that seem like they should work. The solution to that problem isn’t more effort/activity; it’s more time at the beach, away from the temptation of fiddling with your portfolio when a simple buy-and-hold strategy will do.

4. Compound interest is what makes investing magical — and it takes an incredible amount of time.

Warren Buffett has a net worth of $104.6 billion, roughly $104.3 billion of which accumulated after his 50th birthday. Buffett is brilliant, but the secret to his success is the fact that he’s been brilliant for three-quarters of a century. You can achieve great results in years, but sensational results are almost always measured over many decades.

5. Investing has a little to do with math and numbers and a tremendous amount to do with psychology and temperament.

A basic grasp of arithmetic but the ability to keep your cool during downturns will get you far. A PhD in physics with a complex strategy but who has an impulsive and panic-prone temperament will likely lead to regret. That’s because the intelligence side of investing is competitive with millions of other investors, but the behavioral side (patience and impulse control) are only battles with yourself — an easier war to win.

Would you like to get in touch with Robin? You can contact him here.