Ahara Advisors Principles

Ahara Advisors Principles 

Be humble

When confronted with an unknowable future, be appropriately humble about the ability to predict the future.  Be appropriately humble about your ability to value an enterprise where most of its value from its ability to generate earnings in the future.  Take advantage of what the market offers you.   Ahara’s entire approach to investing is based upon the opacity of the future.  

Maximize optionality

Focus on cultivating assets with unlimited upside and limited downside.  

• Equity in limited liability corporation (LLC) 

• Long financial options

Positive cash flow creates more optionality.  You’ve structured your financial life well when you are (by default) 

• accumulating cash and 

• increasing the amount of assets that generate cash

In the game of life, maximizing optionality also means investing in yourself (acquiring skills, knowledge and wisdom) and developing positive long term relationships.

Cut the downside

Structure things to be robust to the downside.  These include:

• Financial crises

• Loss of life

• Natural disasters

• Pandemics

No selling of naked options.  No taking forms of leverage that can be pulled by the lender at the worst possible time (brokerage leverage).

Cash is not trash. Cash is an asset with high optionality, and low carrying costs.  Having enough cash creates the optionality to go negative cash flow for periods of time.

Be ambitious 

The game of life is yours to play in the way you want to.  Getting the financial picture right should help you to experiment and pursue your passions.  Start a business, write a novel, run a goat farm, eradicate measles, find inner enlightenment or deadlift 400 pounds.  Whatever you want to do.