Book Review: Nick and Zak’s Adventures in Capitalism – Words of Wisdom from the Nomad Partnership Letters
Summary
Nick and Zak’s Adventures in Capitalism could be considered a memoir in discipline, conviction, patience and complete comfort with inactivity. The last part may require further explanation unless you’re already familiar with Nick and Zak’s investing approach. As successful long term investors Nick and Zak excel in a trait that is almost counter to most people’s natural tendencies. They’re completely comfortable in ‘doing nothing’ in the sense that if their investment thesis is working, they’ll continue as is without the need to interfere with the beauty of compounding just for the sake of ‘doing something’.
They’re a living embodiment at least from an investing perspective of Alice in Wonderlands White Rabbit stating:
‘Don’t just do something, stand there!’
The book is exactly as it says on the tin – a collection of annual letters from the Nomad Partnership. Nestled within these letters though are timeless principles in investing success that anyone with an interest in what makes for a successful long-term investor would do well to take heed of. At times, it may feel repetitive in stating that no or very little changes have been made in their portfolio however this in itself is a core part of the message they want to convey. Investing success doesn’t have to be exciting, in fact many successful long-term investors spend the majority of their time pouring over annual reports, company investor letters and deep research of potential companies to invest in.
Aside from focusing on some of the core elements of their investment approach from concentration, growth vs value through to delayed gratification the book also contains a number of case studies on companies that Nomad have invested in over the years.
The structure of the book means you can read it all in one, refer to it from time to time or just dip in here and there on different chapters. You don’t particularly lose anything if you read the chapters out of order although it would make sense to read sequentially even if you do so over time.
I believe my first introduction to Nick and Zak was through William Green in Richer, Wiser, Happier but their story is quietly fascinating and incredibly enjoyable read. If you should be so inclined that your holiday read need not be too heavy but also not necessarily a fiction read either, then this is the perfect holiday accompaniment for beside the pool or on the beach.
If you take just part of the principles and lessons from the book and apply them in your own investing the capital outlay for the book will be returned to you many times over.
Who’s It For?
Although I’d suggest this is a valuable read for anyone keen to understand some of the key principles of long-term investing this probably isn’t the book you’d go to as your starter on the topic. It’s more suited to existing investors or those who understanding investing even if you don’t possess a large portfolio already. The biggest takeaway is the value of focusing on the long term rather than looking for quick, big wins in your portfolio.