Bihar Wealth Partners, is a financial planning firm focussed on long-term value creation through fundamental analysis. Our prime focus is Bihar, where only 2% of people invest in the stock market, which is lower than the national average. However, the number of stock market investors in the stock market in Bihar has been increasing steadily in recent years. Recent national budget priority on focussing on aviation, education and infrastructure are likely to develop well-being in the state. We follow original Buffet Partnership fee structure, where investors pay no management fees, and we only charge for returns that exceed 4% annually. Instead of following the hurdle rate, we follow high-water mark provision.
The fund seeks to preserve capital and achieve long-term capital appreciation with controlled risk by focusing on the margin of safety of an investment. Our belief is risk is not the short-term movements in the securities market, rather it is permanent loss of capital. We follow a top-down approach to create a detailed financial model of the target company in the Indian stock market to assess if it’s undervalued. Based on our analysis, we invest in such undervalued companies.
We are not restricted to equity capital markets only, rather we also like to invest in debt capital markets like bonds and notes.
With an investment experience of over 20 years in Indian stocks and investment banking experience of around 10 years across leading global MNC Banks & asset managers with a strong background in Finance and capital markets, our founder seeks to establish permanent wealth creation compounded over the years.
We have aligned ourselves with Warren Buffett Partnership model. When Warren Buffett took control of Berkshire Hathway, he was running his own partnership model that employed a 0/6/25 fee structure. He took the unconventional approach of charging no annual fee but 25% of the profits above a 6% hurdle rate. For example, if the fund returned 20% for the year, then the fee would be 3.5% (20% minus 6% equals 14%, 25% of 14% is 3.5%). We further provide the extra cushion of return to our clients: we don’t earn a penny unless our clients have made at least 8% annual return. Further, keeping the best interests of our clients and maximize their long-term net worth, we decided to have a 22% performance fee instead of 25%.
Since we seek value investors, we recommend that clients only invest assets with at least 5-7 years timeframe (and much longer, if it allows). We follow fundamental analysis, not technical analysis and prefer clients with a long-term mentality of value creation.
Bihar Wealth Partners, is a financial planning firm focused on long-term value creation through fundamental analysis. Our prime focus is Bihar, where only 2% of people invest in the stock market, which is lower than the national average. However, the number of stock market investors in the stock market in Bihar has been increasing steadily in recent years. Recent national budget priority on focusing on aviation, education and infrastructure are likely to develop well-being in the state. We follow original Buffet Partnership fee structure, where investors pay no management fees, and we only charge for returns that exceed 4% annually. Instead of following the hurdle rate, we follow high-water mark provision.The fund seeks to preserve capital and achieve long-term capital appreciation with controlled risk by focussing on the margin of safety of an investment. Our belief is risk is not the short-term movements in the securities market, rather it is permanent loss of capital. We follow a top-down approach to create a detailed financial model of the target company in the Indian stock market to assess if it’s undervalued. Based on our analysis, we invest in such undervalued companies. We are not restricted to equity capital markets only, rather we also like to invest in debt capital markets like bonds and notes. With an investment experience of over 20 years in Indian stocks and investment banking experience of around 10 years across leading global MNC Banks & asset managers with a strong background in Finance and capital markets, our founder seeks to establish permanent wealth creation compounded over the years. We have aligned ourselves with Warren Buffett Partnership model. When Warren Buffett took control of Berkshire Hathway, he was running his own partnership model that employed a 0/6/25 fee structure. He took the unconventional approach of charging no annual fee but 25% of the profits above a 6% hurdle rate. For example, if the fund returned 20% for the year, then the fee would be 3.5% (20% minus 6% equals 14%, 25% of 14% is 3.5%). We further provide the extra cushion of return to our clients: we don’t earn a penny unless our clients have made at least 8% annual return. Further, keeping the best interests of our clients and maximize their long-term net worth, we decided to have a 22% performance fee instead of 25%.
Since we seek value investors, we recommend that clients only invest assets with at least 5-7 years timeframe (and much longer, if it allows). We follow fundamental analysis, not technical analysis and prefer clients with a long-term mentality of value creation.
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