Brown Capital's assets are valued at $ 12 billion. The independent rating agency "Monningstar" (Morningstar) has brought the team to the Wall Street Hall of Fame. “It's just that we play on the right side,” market movers joke.
The secret of success
Many managers with a decrease in the market begin to panic. This is the first indicator of improper asset management. At Brown Capital, the atmosphere is not heating up.
The company's strategy is based on long-term investments in stocks with possible “drawdowns” over short-term periods of time. The firm preys on unknown promising projects that could potentially show rapid growth. Have you ever heard of companies like Balchem, Bio-Techne, Manhattan Associates, Tyler Technologies or Veeva Systems? Not?!
Eddie Brown made a bet on each of them. And by the way, they show an average yield comparable to the well-known Apple.
The secret to Brown’s stock market success is simple:
- Find an organization that correctly saves time, money and nerves of investors;
- Appreciate the professionalism of the company's management and their focus on growth;
- if both conditions are met, it remains to purchase the company's assets and wait.
Capital structure
The brown capital portfolio of small companies consists of an average of 40 positions. For example, the American company Natick, which produces equipment for machine vision. Eddie Brown invested $ 200 million in it in 1992, today the stock is valued at $ 8 billion.
The average yield of the Eddie Brown Fund for the year is 19%, which is not bad for the dollar. The amount of funds since its inception has grown 22 times. However, to date, the fund is closed to new investors.
The company manager notes that the position takes time to begin to grow. The best thing that can be done is not to interfere, it is easy to treat investments and play long on the stock exchange.
A little bit about the founder
Eddie Brown is the legend of the American stock market and almost the most successful African-American investor. He was born in 1940, and his relatives worked in the fields for growing citrus fruits. The dream of a young country boy was office work in a jacket and white shirt.
The main motivation for the success of the future investor was an uncle-entrepreneur and teachers who beat students at school because of skin color. Eddie’s difficulties only hardened. He graduated and got a dream job - a stock market analyst.
He opened his own business in 1983 with the first account for management of 200 thousand dollars.
Eddie Brown showed not only excellent trading results. For African Americans, he was a prime example of success along with the most famous white people. Brown's career is largely due to his participation in television shows.
At the same time, a fund was formed to invest in small projects up to $ 500 million. Now this fund is a model of reliability and high profitability on the stock exchange of America.