Objectives of the NBS Fund
No sleepless nights
A big key to successful investing is managing stress. If your trying to play the market on a short term basis, it's going to be highly stressful when positions go against you, because your short term investment thesis will have no catalyst for a long term recovery. Trading frequently leads to high levels of stress; there's enough to stress about in everyday life, we don't need it any more of it, especially when it concerns our savings.
None of these investments will involve stress, nor much follow up. There will be no sleepless nights, no tossing and turning in worry about the portfolio. Conviction needs to be of the highest order, in order to ensure we don't even need to monitor stocks regularly.
Many of the investments will be in stocks that retain much of their earnings, as opposed to paying dividends. When a company retains earnings, it is crucial that they can get a better return on those earnings, than the individual investor ever could from receiving the dividends. For example; We would prefer a company to not pay a dividend, and reinvest those earnings back into the business, at a high rate of return. The return to shareholders of a dividend is just that, a company paying out all its earnings at a yield of 6%, means they can't reinvest that money themselves at a better rate than 6%.
Not lose value
Warren Buffett's two rules of investing. Rule 1: Don't lose money. Rule 2: Refer back to Rule 1.
No investments will be into all or nothing stocks. Too often people will throw money at stocks that have the potential to be huge, yet an overwhelming probability that they will fail. That's no investing, that's speculating/gambling.