What is Private Equity, without the Private (PEWP)?

I am a value investor. That means that I analyze stocks as if I were investing in a private business. Hence the title, “Private Equity” (investing in private businesses), “without the Private” (investing through public markets).

"Value", as defined in Value Investing, is simply the act of buying something for less than its worth.

The father of Value Investing, Benjamin Graham, defined an investment as an "operation which, upon thorough analysis, promises Safety of Principal and a Satisfactory Return". In the context of the stock market, I interpret this to mean an equity investment with the same risk:reward as bonds.

A layman's way of describing it is to expect to breakeven on a stock investment only via its EPS (or its derivatives); rather than via reselling the shares - i.e. having a business mindset. You should treat fund management itself as a the business of acquiring businesses - with its own business model and landscape - rather than some ancillary activity.

It is my intention to share this joy of investing in businesses with you. Hope you have fun reading!

Why subscribe?

Subscribe to get full access to the newsletter and website. Never miss an update.