About 18 Degree Partnership

My investment philosophy and approach to building long-term wealth

Investment Philosophy

We believe the best investment returns come from owning pieces of exceptional businesses at reasonable prices and having the patience to let them compound over time.

Our approach draws from the timeless wisdom of many great investors who inspire my investment philosophy. Some notable examples include Warren Buffett, Charlie Munger, Sir John Templeton, Guy Spier, Mohnish Pabrai, Joel Greenblatt, Nick Sleep, Qais Zakaria, Martin J. Whitman, Michael McCloskey, and many, many more.

We only invest in companies we can genuinely understand. This means spending countless hours studying their financials, industry dynamics, and competitive positioning. If we can't explain the business model to someone else, we won't invest in it.

What excites us most is finding businesses that can compound wealth over decades, not quarters. This requires patience and the discipline to hold cash when great opportunities aren't available.

Core Principles
Quality First
Focus on businesses with sustainable competitive advantages
Value Oriented
Purchase securities at significant discounts to intrinsic value
Long-Term Focus
Hold concentrated positions for multi-year periods
Patient Capital
Willing to hold cash when opportunities are scarce

Management Team

A personal journey driven by passion and intellectual curiosity

Daniel Andreev

Daniel Andreev

Founder & General Partner

Over the past several years, I've embarked on a journey of deep fascination with business and investing. I've discovered genuine fulfillment in studying exceptional companies, developing rigorous analytical frameworks, and understanding the fundamental drivers of long-term business success.

This journey has revealed to me a profound sense of purpose. I've found my calling in an intellectual pursuit that energizes rather than drains me, one that combines analytical rigor with the excitement of discovering undervalued opportunities in the market.

My dream is not to make money from my partners, but to make money with my partners. I want real partners—individuals who share our long-term vision and understand that true wealth creation comes from patience, discipline, and alignment of interests. Like the investment masters we study, I'm committed to earning the responsibility of stewarding capital through demonstrated results and unwavering integrity.

Value Investing Fundamental Analysis Long-term Focus Business Research

Partnership Principles

The fundamentals we're building 18 Degree Partnership on

Eating Our Cooking

The majority of my savings are in the same basket as my partners

Aligned Incentives

I only get paid through performance fees and need to earn partners' money to get paid

Concentrated Approach

Aiming for 20 positions or less with deep conviction in each holding

Avoiding "Doing Fallacy"

Patiently waiting for what we want with no fear of holding cash

Deep Understanding

We will never buy a stake in a business before we understand what we're buying

Transparency & Accountability

Holding ourselves accountable through our writing and communications

Our Edge

As a small, focused partnership, we have several structural advantages that larger institutions cannot replicate.

Small Company Focus

As a small fund, we can look at smaller companies that larger institutions can't access due to position size constraints.

Position Sizing Flexibility

We don't need to be overly concerned about impacting the market or liquidity constraints when building positions.

Patient Capital

No pressure to match benchmarks or chase trends. We have patient capital and can take our time deploying it wisely.

Additional Advantages
Contrarian Positioning
Can take contrarian risks in unfavorable companies or industries without regulatory pressure or career risk
Genuine Passion
Genuine fulfillment from studying businesses - it doesn't feel like work!
Partnership Structure
True alignment where we make money with you, not from you

Our Newsletter

An open channel of communication and accountability where we share our ideas and learning journey

Annual Letters

Comprehensive reports showing what we went through in the year, mistakes made, lessons learned, and insights into our process and significant holdings.

Available: Annual Investment Letter 2024
Memos

Developing thoughts and processing of market observations, including pieces like "The American Premium Bubble" and "Stepping Away from the Index."

Regular thoughtful observations
Background Reports

Deep dives into industry evolution, business models, and key institutions. Featured series: "The Business of Exchanges" - A 7-Part comprehensive analysis.

Industry education & analysis
Company Write-ups

Detailed analysis and reflections on legendary investors, individual stock write-ups, and other investment-focused writing collections.

Investment analysis & research
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Also available in audio format on Spotify

Investment Process

A disciplined approach to identifying and owning exceptional businesses

1
Screen

Identify quality businesses with sustainable competitive advantages and strong financial metrics

2
Analyze

Conduct deep fundamental analysis to understand business quality and intrinsic value

3
Value

Purchase securities only when trading at significant discounts to estimated fair value

4
Hold

Maintain concentrated positions with patience, allowing compound interest to work

Learn More

Interested in learning more about our investment approach and partnership structure?

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