Where are the Customers’ Yachts?

Our managing director, Teng Boo, has always been fascinated with the stock market, having been a “student” of the market for 37 years. He strongly believes that investing intelligently in equities will provide superior investment returns. Having seen and experienced his first bull and bear market in 1972-1973 was not enough. It was a passion that had to be whetted and Capital Dynamics was the manifestation. But having a passion, although a powerful motivating force, is not enough.

What are the choices available to investors, be they individuals, corporations or institutions, when they want to invest in the stock market? Who can they turn to for investment services without conflicts of interest?

To better illustrate this dilemma facing an investor, we quote from the book “Where are the customers’ yachts?”. Written in 1940 by Fred Schwed, it says:

“An out-of-town visitor was shown the wonders of the New York financial district.
When the party arrived at the Battery, one of his guides indicated some handsome ships riding at anchor.
He said, “Look, those the bankers’ and then brokers’ yachts.

The naive visitor asked, “Where are the customers’ yachts?””

At Capital Dynamics, we realised that there are many investors who needed a fund manager or investment adviser that has a “partnership” attitude towards clients, one whose success is unquestionably tied up with the performance of clients’ investments. There is a dire need for a fund manager or investment adviser that has no conflicts of interest, either hidden or obvious. One that has a very clear focus.

In building up Capital Dynamics as an independent, owner-operated set-up, there is really no doubt that we have put our money where our mouth is. Even though the structure is corporate, our attitude is one of genuine partnership. We do well only if our clients do well.