The 3 Keys To A Successful Investment Business

Keith Amchin of Thinkshop Advisors has over 30 years of business experience, and during that time has accumulated powerful knowledge about trading and investing. He started in 1978 as a CPA and has now become a successful hedge fund manager. In this article he shares his insider secrets of being a successful business manager and investor.

It Starts With The Right Business Partner

Trust is essential when it comes to choosing the right business partner. Fifteen years ago, Keith met his business partner, Alan Kaplan, through their daughters who played AAU Basketball together. “Alan was impressed by the performance of my existing friends and family investment partnership and I was impressed by his investment knowledge and operational skills, so we decided to start an investment business together.”

Sometimes you just meet capable entrepreneurs who make a lasting positive impression on you. This was the case when Keith chose his CFO, Joseph Hoenigmann. “Joe worked for Marcum LLP (CPA’s) the firm we hired to do a performance review of my prior investment partnership. We were really impressed with Joe and were thrilled when we had the chance to hire him.”

It’s important that your business partner brings experience and value to the table. You need to coordinate duties and pinpoint each other’s strengths. ”Alan is a great sounding board for both my investment ideas and discussions of day to day news regarding our investments. We constantly review our investment holdings and potential new ideas, and we discuss the macro investing environment daily. Joe, at 33 years old, brings a youthful perspective and vision that is very complimentary to our strengths. He alerts us to important millennial generation trends and investment opportunities. Joe’s technology savvy has greatly streamlined our operation, which has resulted in better investment resources and more time to explore them.”

Navigate The Market Efficiently

The stock market can seem incredibly daunting to any newcomer because it’s unpredictable and constantly evolving. However, Keith believes the key to understanding the market is knowing that it’s a true reflection of society. He elaborates further, “If you think of any societal trend, there’s an investment or multiple investments that captured that trend, whether it’s smartphones and computers, healthy eating, globalization etcetera. Being involved in the market keeps me in tune with the big picture.”

Most importantly, do your research and perform a regular SWOT analysis on potential investments. “Technical analysis of individual stocks and indexes is widespread and many market traders are trend followers for short-term gain. With one-third of my portfolio I do seek out short-term trading opportunities to attempt to add to total return, but I am, most of all, an old school investor who researches companies and does fundamental analysis. I’m always looking for solid businesses with long term growth stories where there is strong management and a long run societal trend in their favor.”

Keith encourages newcomers to study successful investors and find out what is working for them. “The other major factor now is the rise of ETF’s and indexing. Market players are buying a basket of stocks thru ETF’s and indexes, and shunning individual stock picking. I feel that they are making a mistake. My analogy is that when you buy a box of strawberries there are always some bad ones in the box. I’m trying to only pick the good strawberries when I invest. An ETF or index will almost always have out of favor equities or sectors that will not perform well.”

The Key To Long Term Success

In today’s tech-savvy world, you no longer have to relocate to the big cities to ensure the survival of your business. With hard work and superior customer service, it can thrive anywhere. Keith is based on Long Island and he believes it’s a perfect balance for raising both a successful family and business. “The fact that we are based in Long Island makes us less likely to follow the big crowd of portfolio managers in New York City. Independent ideas and thinking works in our favor. These days you can trade and invest from anywhere in the world. I find that not following the consensus has investment merit. You want to be the first one to own a savvy investment, not the last one. Lead, not follow.”

Time is currency, and the more efficient you are with it the easier it will be to move forward. “Be flexible and ready to admit when you are wrong. Everyone makes mistakes, just keep yours small. That is especially important in investing. The world is always changing, and something that was a brilliant idea one day may no longer be a shining star the next. Great business leaders have the foresight and confidence to remain flexible and manage through change and turmoil.”

Finally, Keith shares the crucial step in maintaining a business in the long term. “Do your homework, be prepared. I always strive to be the best prepared person of any of my peers or competitors. Love what you do. You are going to work long, hard hours so you need to really enjoy your job. It won’t feel like work if it’s a passion.”