At “MSC Investments” we invest in Local and Offshore Listed Equities and indices. The selection of equities and indices that fit our portfolio for medium-term returns is a formulated one that we have devised over a period of time based on our hands-on experience. We follow an income approach to our investment in equities, which require us to have an understanding of the core business of our target investments. We see listed Companies as real businesses and therefore prefer to have a thorough understanding of the business to determine whether those shares are worth acquiring.
i) Liquidity – such listed investments provide us with income generating assets that are highly liquid and allow us to enter and exit positions at will.
ii) Access to real business – acquiring listed equities gives us direct access and ownership of well run businesses. We pay attention to the management teams of such listed businesses as the highly competent ones usually make the right decisions enhancing future returns on our investments.
iii) Analysis – we analyse and monitor profit ratios and projections in detail before investing or reinvesting. Our Analysis is usually financial and allows for our statistical models to gauge the fit of each investment to our entire Portfolio.
This involves finding real businesses that are open to investor capital or even allows us the option of starting one where we have identified a gap in the market. Naturally these unlisted businesses are the most difficult ones to find and to determine value but still remain a viable longterm option. So far this is the one investment area where our options have been limited.
Our general objectives are to find businesses that have a sound business plan and really good growth prospects which can be attained with a good injection of capital or the correct funding structure. Management competence becomes important when investing in such businesses as management can either destroy or grow the business along with our investment.
Cash flow analysis becomes an extremely useful tool in the assessments of such businesses.
One distinct advantage at “MSC Investments” is working with like-minded investors that constantly seek new opportunities in their personal capacity. This allows an opportunity for “MSC Investments” to invest in viable ventures that any one of our investors is fully involved in. This gives us another advantage of having someone we are familiar with monitoring a venture in great detail and reducing the risk associated with unlisted businesses to an extent.
Some of the “MSC Investment” investors have their own fledgling businesses they have established and with time this will allow “MSC Investments” to consider them as potential investments once they have attained a credible track record.