Zechariah Bin Zheng @FundManagerZech: "🧠 𝗧𝗟;𝗗𝗥 - Most of you..."

Australia

🧠 𝗧𝗟;𝗗𝗥 - Most of you copy me for my 9-year track record and consistency — over the next few weeks, I’ll be sharing a few key ideas on why I believe that performance can continue - We focus on asymmetric risk: protect downside, stay open to upside - I look for companies that generate real value — not just stocks that are “going up” - The market feels broken, but fundamentals still work - Short-term performance was mixed, but our process is sound and working Plus: a quick look at Tesla’s P/E vs China Railway’s — and why we’re still confident 🧒🛳️ 𝗖𝗮𝗽𝘁𝗮𝗶𝗻 𝗼𝗳 𝘁𝗵𝗲 𝗦𝗵𝗶𝗽 (𝗟𝗶𝘁𝗲𝗿𝗮𝗹𝗹𝘆 𝗮𝗻𝗱 𝗙𝗶𝗴𝘂𝗿𝗮𝘁𝗶𝘃𝗲𝗹𝘆) I recently snapped a photo of my daughter steering a ship — and it struck me as a good metaphor. - Not every move is about speed. - It’s about direction. - That’s how I try to manage this portfolio — calmly, carefully, and with purpose, no matter how choppy the waters get. Over 50% of you said you copy me because of my track record and consistent results. That means a lot — and I want to show you why I believe that consistency will continue. 🎯 𝗪𝗵𝗮𝘁 𝗪𝗲’𝗿𝗲 𝗔𝗶𝗺𝗶𝗻𝗴 𝗙𝗼𝗿 I’m not here to force 20% a year or chase every move. I’m here to find asymmetric opportunities: - Small downside - Large upside - Backed by real fundamentals That’s what drives every trade and decision. 📈 𝗥𝗲𝗮𝗹 𝗩𝗮𝗹𝘂𝗲 𝘃𝘀 𝗠𝗮𝗿𝗸𝗲𝘁 𝗛𝘆𝗽𝗲 Stock prices move based on two things: 📊 Company earnings ➕ 💬 What people are willing to pay (the P/E ratio) Let’s look at Tesla $TSLA (Tesla Motors, Inc.) as an example: Date Price EPS (TTM) P/E Ratio 2022-12-31 $123.18 $3.62 34.00 2023-03-31 $207.46 $3.40 61.02 2025-06-03 $344.19 $11.07 189.12 👉 At a P/E of 31.1, Tesla’s earnings yield is only ~0.51%. You’re paying a lot for future growth — and hoping it keeps coming. Instead, I focus on companies that: Pay dividends Do buybacks Grow earnings at low valuations As David Einhorn puts it: “Our return can come from the company itself, rather than from other investors.” That’s our approach. 🧩 𝗠𝗮𝗿𝗸𝗲𝘁𝘀 𝗠𝗮𝘆 𝗕𝗲 𝗕𝗿𝗼𝗸𝗲𝗻 — 𝗕𝘂𝘁 𝗙𝘂𝗻𝗱𝗮𝗺𝗲𝗻𝘁𝗮𝗹𝘀 𝗦𝘁𝗶𝗹𝗹 𝗪𝗼𝗿𝗸 Passive money floods into index funds. Winners get more buying, while cheap value stocks get ignored. It creates a feedback loop — but also creates opportunity. I believe this is why the $VOO (Vanguard S&P 500 ETF) $NSDQ100 (NASDAQ100 Index (Non Expiry)) has recovered so well. That’s where we come in. We own businesses that are cheap, profitable, and returning capital. 📌 Example: China Railway $0390.HK (China Railway Group) — one of our largest holdings Down 7% YTD, even though the market is up ~+2% Forward P/E: 5.23 That’s an earnings yield of 19.12% It may not move yet, but we’re getting paid to wait. 📉 𝗥𝗲𝗰𝗲𝗻𝘁 𝗣𝗲𝗿𝗳𝗼𝗿𝗺𝗮𝗻𝗰𝗲: 𝗦𝗼𝗺𝗲 𝗙𝗿𝘂𝘀𝘁𝗿𝗮𝘁𝗶𝗼𝗻, 𝗕𝘂𝘁 𝗡𝗼 𝗪𝗼𝗿𝗿𝘆 When markets fell 12%, we were down just 6%. That’s a win for downside protection. That said, I expected a bit more upside during the rebound. We’re up ~5% YTD — I thought it could’ve been higher given positioning. But I’m not worried. Because we’re doing the right things: - Staying disciplined - Avoiding hype - Letting cash flow and earnings work in our favor 💬 𝗙𝗶𝗻𝗮𝗹 𝗧𝗵𝗼𝘂𝗴𝗵𝘁𝘀 Like steering a ship, investing takes direction, not just speed. I’m grateful to have thousands of you on board — and I’m doing my best to get us there safely, with strong long-term returns. Thanks again for your trust. More next week.

4 Mentioned

TSLA

Tesla Motors, Inc.

VOO

Vanguard S&P 500 ETF

NSDQ100

0390.HK

China Railway Group

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