How useful would it be to manage your own stock portfolio over a 3-5 year period before moving into port mgmt?

Hi folks,

I’d like to ask a rather straightforward question. I have a deep interest in investing, especially in so far as public equities are concerned. I graduated not too long ago. I do work in the Asset Management industry at one of the largest firms in my country, but I work in operational/enterprise risk management and exposure to the investment side per se is limited.

I started investing my own capital in the local stock market at the start of this year. I have say, about $40k of capital invested at the moment, $45k by year’s end, and about $65k by the end of next year. I intend for the market value of my holdings to top $120k in 3 years. I’ve invested solely on a cash upfront basis using money I’ve saved/earned over recent years.

I’ve read the works of and look up to the investing philosophy of the following people – Benjamin Graham, Warren Buffett, Charlie Munger, Peter Lynch, Seth Klarman and Walter Schloss. Suffice to say, I am very much attracted to the value investing framework of the aforementioned investors.

Thus far, I’ve done decently I’d say. On an XIRR basis I’ve got 21% net returns, with low turnover. I also have a fairly concentrated portfolio of six positions.

Initially I embarked on my portfolio merely as a personal goal to achieve strong absolute returns over the long run. But recently my mind has begun entertaining the idea of taking my portfolio performance and investment philosophy (after a minimum 2 to 3 year period of course) to asset management companies and pitching for the role of a fund manager.

How feasible is this? I have decent mathematics background (have a Bachelor’s in Actuarial Science), a decent handle of identifying potentially undervalued companies, and a decent grasp of micro and macro economics.

Before I entertain this thought any further, I would like to know very honestly from the good people on these forums. Would such a career path be possible? Or should I come back down to earth?

Appreciate any and all responses. Thanks!

2 Comments
 
Best Response

First off, you’re insane if you think that’s how it works. Second off, I like your passion and vision. Try to translate that to a research analyst position. No one is going to make you a PM based off of that lol. Also, go beyond just investing. Write reports about your thesis. I could go 3x levered on oil and make that return in a week. Doesn’t mean that I deserve or even can get other people’s money to manage. Good luck.

 

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