Hermes Sulieman Neal Advisors LLP Investment Ethos

- Preservation of Capital is Always Priority #1
The Losing Investor's investment aim is to make lots of money and they often fail to keep it. "Investing Rule No.1: Never Lose Money. Investing Rule No.2: Never forget Rule No.1". "Survive first and make money afterwards".

Passionately Avoid Risk
The Master Investor is risk-averse while the Losing Investor thinks big profit can only be made by taking big risks.

To manage risk,:
Don't invest - When they cannot find a suitable investment, they do not invest at all.
Think Globally ( the futures growth area will be russia , Western and Southern Africa , Vietnam , and India

Reduce risk - Only invest when he can buy at a price significantly lower than the estimated value of a business. "It's not risky to buy securities at a fraction of what they are worth".

Actively managing risk - Constantly monitor the market and change course immediately when necessary. "To survive in the financial markets sometimes means beating a hasty retreat".

Manage risk actuarially - Deal with averages, not individual events. Make sure the odds or probability of winning is tilted to your favor such that, on the average, you can win.

Develop Your Own Unique Investment Philosophy
Our Ethos has developed his own investment philosophy based on his personality, abilities, knowledge, tastes and objectives. No two successful investors have the same investment philosophy. On the other hand, the Losing Investor has either no investment strategy or uses someone else's.

Develop Your Own, Personal System for Selecting Buying and Selling Investments.
The Master Investor has developed and tested his own personal system for selecting, buying and selling investments while the Losing Investor has no system. The latter has adopted someone else's system without testing and adapting to his own personality.

Diversification is for the Birds
The Master Investor does not diversify and believes only ignorant investors practice it. The Losing Investor lacks confidence to take a huge position on any one investment.

"Diversification is a protection against ignorance. [It] makes very little sense for those who know what they're doing."

Focus on After-tax Return
The Master Investor always make an effort to legally minimize his tax bill while the Losing Investor neglects taxes and transaction costs, which affects his investment performance.
"The really good manager does not wake up in the morning and say, 'This is the day I'm going to cut costs,'anymore than he wakes up and decides to practice breathing."

Only Invest in What You Understand
The Losing Investor does not realize that a deep understanding in what he is doing is an essential prerequisite to success and rarely realizes that profitable opportunities exist within his own area of expertise.
"The market, like the Lord, helps those who help themselves. Unlike the Lord, the market does not forgive those who know not what they do."

Refuse to Make Investments that do not Meet Your Criteria
The Losing Investor has no criteria to filter investments and cannot say "no" to his own greed."If you don't inderstand it, don't do it."

Do Your Own Research
The Master Investor is continually searching for new investment opportunities that meet his criteria and actively engages in his own research. The Losing Investor is looking for the easy way out and hopes to earn money fast. He would often follow the "hot tip of the month".
"If I'm interested in a company, I'll buy 100 shares of all its competitors to get their annual reports."


Infinite Patience
When we cannot find an investment that meets his criteria, he has the patience to wait indefinitely until he finds one that does. The Losing Investor feels he needs to be doing something in the market at all times.
"The trick is, when there's nothing to do, do nothing."


Act Instantly
The Master Investor acts instantly when he has made a decision while the Losing Investor procrastinates. "When we see something that makes sense, we're willing to act very fast and very big."

Hold a Winning Investment Until There's a Pre-Determined Reason to Sell
The Master Investor holds on a winning investment until a pre-determined reason to exit arises. The Losing Investor rarely has a pre-determined rule for taking profits and often worried about a small profit can turn into a loss, so he cashes in early and misses big gains.

Follow Your System Religiously
While the Master Investor follows his own system religiously, the Losing Investor "second-guesses" his system (if he has one in the first place).

Admit Your Mistakes and Correct Them Immediately
The Master Investor is aware of his own fallability and corrects his mistakes the moment they became evident. This explains why he rarely suffers more than small losses. The Losing Investor hangs onto losing investments in the hope that he'll be able to "break even". As a result, often suffers huge losses.
"Where I do think I excel is in recognizing my mistakes... that is the secret to my success."


Turn Mistakes Into Learning Experiences
The Master Investor always treats mistakes as learning experiences while the Losing Investor never stays with any one approach long enough to learn how to improve it.
Pay Your Dues
As the Master Investor's experience increases, so does his returns. He then spends less time to make more money and has so called "paid his dues". The Losing Investor is not aware that it is necessary to "pay his dues" in order to be successful in investing. He also rarely learns from experience and tends to repeat the same mistakes.
Never Talk About What You're Doing
We would not talk to anyone about what he is doing and he is also not interested or concerned with what others think about his investment decisions. The Losing Investor always talk about his investments and "tests" his decisions against others' opinions rather than against reality.
"My idea of a group decision is to look in the mirror."

Know How to Delegate
The LLP has successfully delegated most if not all of his responsibilities to others while the Losing Investor selects investment advisors and managers the same way he makes investment decisions.
"In evaluating people, you look for three qualities: integrity, intelligence, and energy. And if you don't have the first, the other two will kill you."
"I am willing to use different people employing different approaches as long as I can rely on their integrity."

Live Far Below Your Means
The Master Investor lives far below his means and the Losing Investor lives beyond his means.
"Probably the most tangible benefit [of being rich] is that I get very good football games."


It's Not About the Money
The Master Investor does what he does for simulation and self-fulfilment but not for money. The Losing Investor is motivated by money and thinks investing is the easy way to get rich.
"I'll keep [investing] as long as I live."

- Love What You Do, Not What You Own
The Investor is emotionally involved with and gets his satisfaction from the process of investing. He can walk away from any individual investment. The Losing Investor falls in love with his investments.


Live and Breathe Investing 24 Hours a Day
The Master Investor lives and breathes investing 24 hours a Day. The Losing Investor is no fully dedicated to achieving his investment goals.

Put Your money on the Line
The Master Investor puts where his money where his mouth is. His personal wealth is identical to that of the people who has entrusted money to his management. On the other hand, investments of the Losing Investor contribute little to his net worth. In fact, these investments often make losses which have to be made up by other sources of income like salary.