Mingdom Capital

01Overview

Background

I'm a software engineer who reached financial independence in my 30s. I've been active in the markets since 2009, making plenty of mistakes and learning just as many lessons along the way. I manage my family fund, and after a 72% return in 2023, I decided to make the portfolio public in February 2024. Full transparency—holdings, trades, performance. All on the record.

Approach

I treat this portfolio as a serious business, not a casino. My goal is to compound capital responsibly over decades, not chase the latest hype cycle. I focus on businesses I understand—mostly tech and consumer—within my circle of competence. I look for risk-adjusted returns and asymmetric opportunities.

Why Public?

Accountability. When your portfolio is public, you can't hide mistakes or cherry-pick wins. It keeps me honest to my investors—aka my wife and daughter ;)

Track Record

02Philosophy

1. Maximize Long-Term Intrinsic Value

My objective is simple: maximize the long-term compound annual growth rate of intrinsic value per share. I am not trying to smooth out quarterly earnings or shadow an index. I am trying to own businesses that compound capital efficiently over decades.

2. Concentrated Conviction

I run a concentrated, research-intensive strategy. I adhere to the belief that you only need a few wonderful ideas to build wealth. I target 10–15 high-conviction positions in companies I understand deeply—primarily within the Technology and Consumer sectors. I'd rather hold a volatile winner than a stable mediocrity.

3. Asymmetric Risk/Reward

I am obsessed with the risk of ruin. My approach is to identify significant valuation discrepancies where the downside is protected by tangible assets or cash flow, and the upside is driven by a clear catalyst. I am willing to be patient for these opportunities to materialize.

4. Temperament Over Intellect

In the long run, investing is a game of temperament, not just IQ. I strive to be greedy when others are fearful and fearful when others are greedy. My edge is the ability to sit on my hands and do nothing when there is nothing to do, and to act decisively when the odds are heavily in my favor.

03Mandate

The Mandate

  1. Beat the S&P 500 over rolling 3-year periods.
  2. Limit Drawdowns to -30% (Preservation of Capital).
  3. Compound Capital at high rates for the long term.

Portfolio Rules

1. Selection Criteria (The "What")

  • Quality Hurdle: ROE > 15%, Low/Manageable Debt, Consistent Free Cash Flow.
  • Margin of Safety: I only buy when there is a significant gap between price and intrinsic value.
  • Skin in the Game: Preference for founder-led companies with high inside ownership.

2. Position Sizing (The "How")

  • Position Limit: Maximum 15% in any single name.
  • Concentration: typically 10–15 holdings. I am comfortable with zero exposure to sectors I don't understand.

3. Risk Management (The "Guardrails")

  • Hard Floor: Max portfolio drawdown tolerance is -30%.
  • Rebalancing: Trim winners when they exceed 20% of the portfolio.
  • Cash Policy: Cash is an option. I target 20% cash/bonds to deploy during volatility. I will not be fully invested if I cannot find opportunities that meet my hurdle rate.

Reporting

  • Benchmark: S&P 500 Total Return
  • Public holdings updates: Quarterly
  • Performance: Quarterly
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