We enjoy the process far more than the proceeds
– Warren Buffett
The Eu Capital Difference
At Eu Capital, we believe the journey is everything. We treasure long-term relationships and have built partnerships based on trust and understanding that have withstood the test of time.
As independent managers, our interests are completely aligned with our clients – in fact, our clients’ monies are invested in the same funds as our managers.
Our Core Philosophy
Our core philosophy merges the best of Eastern and Western thinking – the words of sages Lao Zi and Sun Zi underpin our principles of flexibility and adaptability, while Western greats like Warren Buffet, Benjamin Graham, and Philip Fisher provide the wisdom which steers our methodology.
– Lao Zi
For the Chinese, water symbolises wealth and abundance. It benefits all living things and represents adaptability and flexibility, as it simply flows around all obstacles in its way. It embodies our fundamental belief – to help our clients navigate fast-changing market conditions nimbly and effectively.
If their portfolios are trees, we are the life-giving essential that nurtures the roots for lifelong growth and expansion, ensuring a stable legacy for future generations.
Our Western-based approach to portfolio and investment management is grounded in the beliefs of Benjamin Graham, the grand master of value investing. We utilise a proprietary value model for quantitative analysis and Phillip Fisher’s qualitative approach to assess company profitability.
Finally, Buffet’s thinking ties our qualitative and quantitative methods together. We stand on the shoulders of giants with a unique investment philosophy synthesised from both Asian and Western investment cultures.
People who invest make money for themselves; people who speculate make money for their brokers.
– Benjamin Graham
The Eu Capital 5 Stage Investment Process (IICAPE)
Stage 1: Identify
We zero in on companies with a specialized business plan, a good business model, competitive advantage, persistent earnings, among many others. In general, we identify progressive companies that represent the future.
Stage 2: Investigate
We examine a company’s financial statements, management team, corporate structures and related news to ascertain authenticity and transparency. We also verify the integrity of the leadership and stakeholders – major shareholders, the board and the management team. We also seek valuable information from people with mutual interest, via the “scuttlebutt” technique. This stage is the most intensive in our primary research process.
Stage 3: Calculate
If we are satisfied with our investigations, the calculations begin. We develop a quantitative analysis, calculate the company’s fair value price and measure its margin of safety with our proprietary valuation model.
Based on conservative assumptions, our model is constantly fine-tuned and has successfully weathered the challenges of the 2008 Global Financial Crisis.
Stage 4: Analyse
Here, we analyse the global macro environment, where we determine the riskiness of the general markets through scenario analysis and judge the sensitivity of our target price to expected forecasts by the market consensus. With our team’s collective experience of 40 years in the financial markets, our unique business acumen provides a balanced perspective with long-term applications and insights.
Stage 5: Plan & Execute
After the exhaustive research and projections, we start drawing up the execution strategy and review process – an intense, highly nimble process that ensures our clients’ peace of mind. Our strategy varies day to day based on close monitoring of the day’s market conditions and performances.
Who We Work With
Family business owners who possess over USD 10 million of investible assets.
Prudent and hardworking entrepreneurs who value compassion and humility.
Investors looking to preserve capital, plan for succession and give back to society.