Launched in April 2011, Eternal Growth Partners is a Sydney based private investment company that invests in Australian listed businesses.
We currently invest our funds solely in businesses listed on the Australian Exchanges (and in cash). We use a proprietary model to calculate the fair value of these businesses, when we find businesses operating substantially under what we calculate to be their fair value, we then apply a stringent qualitative assessment. The small handful of companies meeting both of these conditions are considered for investment.
We believe a simple approach to investing can deliver superior returns, we do not use leverage or invest in complex financial products or derivatives.
We do not "trade" stocks, we select outstanding businesses and buy an interest in these businesses. We regularly monitor their performance and update our valuations, only ever making a sale if a truly superior alternative application for our capital arises. We expect generally to hold our companies for many years.
We believe a fee should be earned, not awarded. We do not charge a management fee. We only apply a performance fee if we deliver a return superior to the S&P ASX200 Franking Credit Adjusted Annual Total Return Index over a full financial year.
A meaningful portion of our personal net worth (currently over 3/4) and that of our families are invested in EGP Fund No. 1 Pty Ltd. We have a strong interest in creating wealth and keeping costs down. My motivation here is similar to a tale I read in Seth Klarman's excellent book 'Margin of Safety':
"In the building practices of ancient Rome, when the scaffolding was removed from a completed Roman arch, the engineer stood beneath. If the arch came crashing down, he was the first to know. Thus his concern for the quality of the arch was intensely personal, and it is not surprising that so many Roman arches have survived."
EGP Fund Number 1 Pty Ltd is the Roman arch I am the engineer of, it is for this reason I willingly stand under it with the majority of my family wealth.
The purpose of running as a private investment company is in order to establish an audited, verifiable track record, in order to take our unique 'reward for results' concept to a wider audience at some point in the future.
We welcome feedback and comments; please drop me a line at Tony@eternalgrowthpartners.com
Please Note: We are not currently an AFSL holder. We are a private investment company that can take on only 20 shareholders and only $2 million in any 12 month period as per Section 708 of the Corporations Act or Sophisticated and Professional Investors. We do not offer advice or recommendations of any kind.