THE SPEAR FUND

The strategy of the Spear Fund is not too dissimilar to how Charlie Munger describes his investment philosophy; patiently [sometimes for years] waiting on the side of a river for the largest fish you can find with the highest probability of 'Spearing' it. Warren Buffet, Charlie's partner, gives a similar analogy by sitting in the batters box with an unlimited number of pitches. You only swing when you are certain you can put the ball out of the park.

The Spear Fund's annual return target is 26% which would double investments every 3 years. There will be years the fund does much better than 26% and years it does worse; ideally though we average out to 26% annual return.

The majority of the fund's monies will be focused on investments into businesses that offer a wide competitive moat, owner oriented managers, little debt and prices selling at significant discounts to their intrinsic [real] value. A smaller portion of the monies will be used to create monthly cash flow through probability based options trades.

From time to time we might invest into other value-based Hedge Funds funds if they are holding a concentrated portfolio of businesses we like.