About Us

Simple Capital, LLC is a U.S. Registered Investment Adviser offering investment management services to individuals and institutions in the United States and abroad. Our investment services are designed for patient investors who desire to pursue their long-term financial goals by investing in a diverse group of businesses worldwide.

Investment Philosophy

Our investment strategy is value-oriented and opportunistic. We believe every company has an intrinsic value which is independent of its market price. The intrinsic value of a company is the present discounted value of all the cash an investor can reasonably expect to take out of that company for its remaining life. The fundamental premise of our investment philosophy is that market prices and intrinsic value must converge at one point or another. Our goal is to buy shares of good companies at significant discounts to their intrinsic value (i.e., when the market price of the stock is at least 30% below our conservative estimate of intrinsic value).

You may wonder why market prices would ever be significantly below intrinsic value. The answer is that market prices are generally driven by human emotions - short term views of the future affected by undue fear or greed. Our job is to take advantages of market opportunities when stock prices are depressed because of temporary events, uncertainty or unfounded beliefs. We love to buy shares of good companies at panic prices.

Investment Objective

Our investment objective is to produce long-term investment results superior to that of the general U.S. stock market as measured by the S&P 500 Index. We aim to produce 15% average annual returns over periods of 5 years or more– this is by no means a guaranteed, in fact there could be periods where our results are nowhere near our goal. However, we believe we can achieve these results and we are putting our money where our mouth is.

Our Investment Strategy

We pursue our investment objective primarily by buying shares of good companies at low prices in relation to their intrinsic value. A good business is one with the following characteristics:

• Sustainable Earning Power. The company must be engaged in a durable industry and have some competitive advantage that will allow it to earn an acceptable profit for the foreseeable future.
• Capable and Responsible Management. Managers that communicate candidly with shareholders and attempt to create long-term value.
• Adequate Return on Equity. A demonstrated ability to generate revenue at an adequate profit for the foreseeable future; and
• A strong Financial Condition. The ability to continue operations through an extended period of adversity or finance growth with internally generated funds, without the need to issue additional equity or borrow substantially.

A company’s stock price is low when its market price is significantly below our conservative estimate of its “intrinsic value.” (i.e., 60 cents on the dollar) Our experience indicates that market prices eventually equal intrinsic value – sometimes this happens very fast, and other times it takes several years. By investing only at significant discounts, we gain some protection against negative business developments or imprecise estimates of value. Additionally, we purchase shares of 15 to 25 companies operating in different industries and different areas of the world. In our opinion such a portfolio offers long-term investors the best combination of protection against permanent loss of capital and superior upside potential.

Products and Services

Simple Capital offers you the opportunity to invest through the following alternatives:

• The Simple Capital Fund

  A mutual fund in which clients can start an investment program with as little as $100 per month or a lump sum investment. Learn more

• Separately Managed Accounts

  This option is available for institutions and high net worth clients with account balances over $500k.

• Offshore Investment Partnership

  This option is available only to non-US clients (clients who reside outside the United States). You can start with as little as $100 per month.

Why Invest with Simple Capital

Simple Capital offers professional money management strategies designed to help you achieve your long-term financial goals without taking undue risk. Our mission is to help clients accumulate, grow and preserve wealth while taking low risks. The main differences between us and other managers are:

• Aligned Interests

  Our personal assets, as well as assets from family and friend, are invested in the same companies and with the same strategy as our client’s assets. We drink our own medicine.

• Disciplined Investment Approach

  We invest only in businesses we can understand, and only when our own research indicates that their shares are significantly below our conservative estimate of their true value.

• Independent Thinking

  We invest based solely on our own research and analysis of individual companies, without regard to stock market fads or fears.

Our investment objective is to produce long-term investment returns superior to that of the stock market in general as measured by the S&P 500 Index. While we can’t guarantee results, we guarantee that our investments will do only as well as yours.