Company strategies and investments

Our strategy is based on three principles:

We identify undervalued companies in emerging and conservative markets

We maintain a balance between high returns and moderate risks

We hold investments for the long term perspective

Identification of undervalued companies

Our fund specializes in finding companies that have high growth potential but for some reason are not reflected in their current market value. Such companies may be undervalued due to low awareness, temporary issues, industry cyclicality, or other factors.

We analyze companies' financial indicators such as profitability, debt burden, dividend policy, and market capitalization. We also study their business model, competitive advantages, growth prospects, and risks.

We use various multiples to assess the degree of undervaluation of companies, such as P/E (price-to-earnings ratio), EV/EBITDA (enterprise value-to-EBITDA), and others.

We select companies with low values of these multiples compared to industry averages or historical levels. This means that we buy the stocks of these companies cheaper than their future earnings justify. Thus, we have the opportunity to profit from the difference between the actual and potential stock prices.

Long-term investment retention

Our fund does not engage in speculative operations in the market. We do not buy or sell stocks frequently or for random reasons.

We believe that the best way to achieve good returns is to invest in quality companies and hold their stocks for a long period of time.

We adhere to the concept of "value investing", which was developed by such famous investors as Benjamin Graham and Warren Buffett. The essence of this approach is to look for good firms that are somehow underestimated by the market. We buy their shares at a low price and wait for the market to realize their true value. This approach requires patience and discipline, but in the long run it brings high returns.

We do not sell company stocks if their prices temporarily decline due to market fluctuations or other factors. We sell stocks only in two cases: if the company has lost its competitive advantages or if we find another company with higher growth potential.

Maintaining a balance between high returns and moderate risks

Our fund does not strive for maximum returns at any cost. We also take into account the risks that are associated with investments in different types of assets. We strive to ensure that our portfolio is diversified by industry, geography and asset types.

We also use the “Barbell Method”, the essence of which is the parallel investment in high-yield assets with high risk and conservative, reliable assets with moderate risk. This method allows us not to bet everything when we take risks, thus making it impossible to “lose” in the long run.

SQ STATES LTD has developed its own unique software that allows to conduct more accurate analysis of the market and find more profitable deals, which has significantly increased the company's profits, as well as simplify the work of traders.

We invest in the following markets:

Green energy

This is an industry that deals with the production and utilization of energy from renewable sources such as the sun, wind, water, and biomass. This industry has great development prospects due to the increasing demand for environmentally friendly forms of energy and the support from governments and the public.

Blockchain startups

These are companies that use blockchain technology to create new products and services in various fields of activity. Blockchain is a system of distributed data storage that provides a high level of security, transparency, and efficiency. This technology can be applied to financial transactions, logistics, digital identification, and other areas.

Cryptocurrencies

These are digital currencies that use cryptography to secure transactions and control the issuance. Cryptocurrencies are not dependent on central authorities and can facilitate international payments, reduce fees, and increase user privacy.

AI startups

These are companies that develop and apply artificial intelligence to solve different problems. Artificial intelligence is the ability of machines to learn, analyze data, make decisions, and perform complex functions. This technology can be used to improve healthcare, education, entertainment, and other areas of life.

Real estate

This is property in the form of land or buildings. Real estate investments can generate income from rent or sale of properties. Real estate can also serve as a hedge against inflation and financial market crises.

Shares of insurance companies and tech giants

These are the stocks of large corporations that hold leading positions in their industries. Insurance companies provide services to protect against various risks such as illnesses, accidents, or property loss. Tech giants are companies that develop and promote innovative technologies in the internet, social networking, e-commerce, cloud services, and other sectors. The stocks of these companies are characterized by high liquidity, stability, and revenue growth.

Precious gemstones and metals

These are valuable materials used in jewelry, industry, and investments. Precious gemstones and metals have high resistance to corrosion, wear, and chemical substances. They are also rare and limited resources.

Our fund allocates its investments across these markets based on their growth potential, risk level, and current conditions. We constantly monitor market changes and adjust our portfolio accordingly.

Why our strategy is effective and reliable

Our strategy is effective and reliable for several reasons:

We invest in companies with high-quality businesses that have demand for their products and services, market competitiveness, good financial condition, and growth prospects.
We buy stocks of companies at a low price relative to their future earnings. This allows us to achieve high returns through the increase in stock value in the long term.
We hold stocks of companies for a long period of time. This allows us to avoid frequent transaction fees, minimize tax burden, and receive dividend income from stocks.
We diversify our portfolio across different types of assets. This allows us to reduce the risk of losses from price fluctuations in one market or industry. It also enables us to capitalize on opportunities in different markets.
We make cryptocurrency transactions both on futures and spot trading. Thanks to unique software, our specialists carry out transactions not only for the growth of coins, but also for their fall. Investors make money regardless of the market situation.

Our strategy is suitable for those investors who want to receive high returns from their investments with a moderate level of risk.