From the Nomad Investment Partnership Interim Letter, 2004:

If we could find 50 ideas at equal discounts to value, with equal probability (conviction) of value being realised, then they could all be equally weighted in the Partnership. We could then look forward to a nice smooth rise in the value of our shares, free from the swings a more concentrated portfolio might create. But life is not like that. In reality, opportunities in which we are comfortable to deploy capital are rare, and the highest conviction ideas the rarest of them all. The issue then is how much to invest in each idea. ..

BL Premium

This article is reserved for our subscribers.

A subscription helps you enjoy the best of our business content every day along with benefits such as articles from our international business news partners; ProfileData financial data; and digital access to the Sunday Times and Sunday Times Daily.

Already subscribed? Simply sign in below.



Questions or problems? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now