Allan Mecham

It is recomforting to see how applying Buffett-like strategies can have excellent results on a small portfolio. Allan Mecham exemplifies it. He dropped out of college because he was too busy running his own investment firm and reading a lot of books about investment, college was boring in comparison, “I was 19, I was staying up till 3:30 a.m. devouring this stuff”. He does not spend much time crunching numbers or building sophisticated spreadsheets, he prefers to devote his time to learn about the business, it’s products, competitors etc… He concentrates on just around 10 stocks and as Buffett, spends his time reading and has no idea about where the market will go. He is happy with just finding 2 investment ideas per year, it’s enough to have excellent returns. With those simple strategies he managed to have a 400% cumulative return in a few years and positive returns even in 2008. It was a pleasure to learn about him, it reinforces my investment philosophy :). Here is an interesting article that gives more information about him.

Cheers!
jrv

About jrv

I was born in Spain and lived in Belgium, Chile, France, USA, Argentina among other places. Currently I am trying to settle down in a wild place. I am "retired", even though now I dedicate more hours "working" for my investments than I ever worked in the real labor market where I used to work in IT and Banking. I am a family man, I have a lovely wife, several sons and one step daughter. I have humble tastes, I like to stay home and read about companies and investments. I started investing at 25 before the internet bubble exploded. I did not know much about investing and liked technical analysis so my results were pretty bad. Fortunately I did not have much to lose. Some years later in 2006 bored of doing only real state investments and with quite a lot of money saved I opened an account in a cheap and excellent online broker and started again. This time I did not want to commit the same mistake, so I decided to follow a model. I heard that Warren Buffett was the best at making money via stocks so I started by reading a lot about him, all of his shareholders letters and several of the books that he recommended. I learned a lot, started applying his investing principles and reading a lot of 10K's. Digested news from lots of different sources. Basically I started buying very good and cheap companies and holding them for ever if possible and if nothing changed fundamentally. When the housing crisis started I was more than 75% cash. At that time I identified good companies at incredibly cheap prices so I invested most of my savings in stocks. In less than I year I doubled. By the second semester of 2009 I turned my software company into an investment vehicle and dedicated myself full time to it. My wife and I decided to change our lifestyle and moved from Belgium to the beach in a wild country. The goal was to keep fixed costs low in order to be able to live with a minimum 6-8% yearly return but specially to move away from the inhuman life of civilization and to have finally some peace and sunny weather to concentrate better on investing. Now I can think and study about companies 60 hours a week and I am doing great. I can finally do what I want full time and can proudly say that I have never been so happy, specially also with my just born 4th son, my other great kids and my sweet wife who supports me fully while I study most of the day and patiently wait for the opportunity to make a swing ! You can learn a bit more about my portfolio by viewing it at www.kuchita.com/view/sumo.php or you may learn more about me and my family by following the link "Author's site" from the menu above.
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One Response to Allan Mecham

  1. Aly says:

    Great read. Thank you.

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