Harvesting Alpha

Applying cross-disciplinary insights to the world of private markets, where inefficiencies still reward the prepared mind.

[Harvesting Alpha @HarvestingAlpha]

Read the latest Harvesting Alpha - this time a three-part series on capital allocation. Memos 7, 8 and 9 look at where returns really come from and where sophisticated portfolios quietly fail.

https://t.co/cZPceDWTrP

[Harvesting Alpha @HarvestingAlpha]

Read the full article: Harvesting Alpha | The Smile Curve https://t.co/7S0UVkePkY
#Investing #Strategy #PrivateMarkets #BusinessModelDesign

[Harvesting Alpha @HarvestingAlpha]

SMILE - your margins might thank you.
Some businesses sell more and lose more.
Why? Because they’re stuck in the low-margin middle, doing everything themselves.

[Harvesting Alpha @HarvestingAlpha]

Where's your trough - how do you diagnose your own curve?
1. Map your entire value chain.
2. Score where you truly add value.
3. Identify low-margin work - outsource or automate.
4. Reinvest in high-value ends: design, relationships, reputation.

[Harvesting Alpha @HarvestingAlpha]

Good to see the mainstream media picking up on two key themes - the benefits of alternatives and significantly - smaller niche players outperform!
https://t.co/2i56SQILCB

[Harvesting Alpha @HarvestingAlpha]

Beyond Equity Volatility: Aura Group’s Billion-Dollar Bet on Australian Private Debt https://t.co/Xti3XWAUQK

[Harvesting Alpha @HarvestingAlpha]

When your downside is genuinely limited, you can stay invested long enough for compounding to work — and that’s the real edge.

Read full article: https://t.co/cZPceDWTrP

[Harvesting Alpha @HarvestingAlpha]

For decades, investing was simple:
Higher risk = higher return.

But now two different fears drive investors — and they often pull in opposite directions

Read article: https://t.co/cZPceDWTrP

[Harvesting Alpha @HarvestingAlpha]

Private credit on productive farmland can balance both:

- Predictable, collateral-backed income
- Low correlation with equities
- Inflation & scarcity protection

[Harvesting Alpha @HarvestingAlpha]

Interesting statistics, and worth noting that debt to real estate value in Australian farmland sits at less than 15 percent. Plenty of locked up capital that should be being accessed for productivity and other improvements!

[Pingu Capital @PinguCapital]

Australia’s debt to real estate ratio is ≈28%.

Japan’s before their crash was 30%.

Irelands before their crash was 23%.

This “balance sheet” doesn’t mean what many think it does.

[Harvesting Alpha @HarvestingAlpha]

Some great research by Aura on the increased returns and decreased volatility that an exposure to alternative assets / private credit can bring to a portfolio. https://t.co/v0g32QJQM7

[Harvesting Alpha @HarvestingAlpha]

If you really want to invest like Buffett did in his early years:
🚗Leave the office
🤝Meet businesses face-to-face
🔍Look where no one else is looking

In 2025, that’s not Wall Street — it’s the private markets.
#Investing #PrivateEquity #Finance #WarrenBuffett #CareerAdvice

Read my latest memo: https://t.co/vDROSFXfH0

[Harvesting Alpha @HarvestingAlpha]

💼 Every young finance grad wants to “be like Buffett.”

They’ve studied the market, memorised quotes, and opened a trading account.

But here’s the thing:

You can’t invest like Buffett.

At least not in today’s markets.

🧵 Let me explain:

[Harvesting Alpha @HarvestingAlpha]

Buffett himself has said:

“If I were managing small sums, I could make 50% a year.”

Translation: His edge was scale-sensitive, time-bound, and not replicable.

So what’s the lesson?