RBG’s core investment strategy resembles that of Berkshire Hathaway, a long term value based investment approach in established businesses with stable cash flow. It operates performance only based Semi-Captive Funds through RB Capital, moving investments up or out from their original entry fund towards RBG’s core investments. These funds are investments in Alliances/New Ventures, and Growth where there is a proven market & need to expand rapidly.
RBG is for increasing the value of the shareholders investment. RBG’s activities lead it to produce two things. The first is investment reporting that is useful for its shareholders, and the second being returns on those investments over the long term.
Is RBG similar to any other companies?
RBG’s ideology is very similar if not the same to Berkshire Hathaway. Its structure is very similar in that it acquires a diverse range of businesses that may have no industry relation to each other, with the same idea of long term value creation. And likewise our investors are long term patient shareholders.
The ideal business owner is somebody who has a long term view of their business, who is probably going through a change in ownership from the founder to a family member and wants that family member to carry on with the business in the way that the business was formed, with the same values and the same intention etc. The Owner would like to make sure that the business is successful in the future by partnering with a co-owner that is happy for that business to run in much the same way.
RBG has increased investment value for investors over 70%.p.a. since 2015. It has a philosophy of storing wealth for the long term with certainty, which investors like. Its equity based approach to investment resembles Arabic banks in which they are interested in solid and stable equity based lending, as opposed to financial engineering and leverage.
RBG started 11 years ago from a basic premise; people have two problems in getting what they want, they either don’t know what they want or they don’t have the resources to make what they want happen. From that second problem, and playing on the idea of a bank, came the concept of a banquet of resources. A resource banq.
It would be fair to say that identifying value is in John’s DNA and the idea of filling the Banq with resources is a logical or even natural step for John.
The holding group is kept deliberately lean where there are currently less than 5 people.
From a group perspective we have a core set of processes to find and determine value as well as the management and reporting of the portfolio’s performance to internal reporting and shareholders. The CEO inspects and reviews deals, and communicates with the managers and shareholders.