Investing in your 7th best idea instead of your best one is not a good decision.

Diversification can reduce volatility, but it also leads to mediocre returns. For clients who can overcome volatility through long-term investing, volatility is not a risk but an opportunity.

Fantastic opportunities do not come easily. Noah practices concentrated investment in companies it fully understands to maximize returns.

"If you can identify six wonderful businesses, that is all the diversification you need. And you will make a lot of money. And I can guarantee that going into a seventh one instead of putting more money into your first one is gotta be a terrible mistake."
- Warren Buffett, Lecture at the University of Florida Business School

Noah's fee structure is a 0% management fee, a 6% annual hurdle rate, and a 25% performance fee on excess returns. In other words, we do not profit until the client has achieved an investment return of more than 6% per year.

This '0 / 6 / 25' structure, known as the 'Buffett formula' from its successful application during Warren Buffett's partnership era, is a model that Charlie Munger still considers fair and is currently used by funds like Mohnish Pabrai's.

"...The Buffett formula was that he took 25% of the profits over 6% per annum with a high water mark. So if the investor didn't get 6%, Buffett would get nothing. And that's Mohnish's system. And I like that system..."
- Charlie Munger, Daily Journal Annual Meeting, 2018

'Skin in the game' is an idiom meaning to take on risk by being directly involved in achieving a goal.

The CEO and major shareholders of Noah Investment Management are themselves the company's largest clients, investing alongside all other clients without distinction.

"Do not pay attention to what people say, only to what they do, and how much of their necks they are putting on the line."
- Nassim Nicholas Taleb, Skin in the Game: The Hidden Asymmetries in Daily Life