Dividend-Based Business Stakes

Shaan describes his strategy of acquiring minority stakes (15-30%) in profitable businesses to generate regular dividend returns, with his first investment being in Shepherd, a company that helps businesses hire international talent.

Investment Strategy

• Target profitable businesses that already have product-market fit
• Focus on 15-30% ownership stakes rather than full acquisitions
• Look for businesses that can generate 30% annual returns through dividends
• Avoid businesses that need "fixing" since minority stake limits control
• Ensure the business is large enough to be worth the effort (avoid small revenue deals)

Example Investment: Shepherd

• Business Model:

  • Helps companies hire international talent, primarily in Philippines
  • One-time finder's fee vs competitors' 3x monthly recurring fees
  • Has local recruiting office in Philippines for quality control
  • Focuses on high-quality vetted candidates

• Investment Structure:

  • Bought equity stake (percentage undisclosed)
  • Already receiving dividend payments
  • Provides marketing/promotion support through podcast audience
  • No operational involvement required

• Target Market:

  • Companies looking to hire international talent
  • Focus on roles like:
    • Customer support
    • Personal assistants
    • Data analysis
    • Design
    • Development

• Competitive Advantage:

  • More sustainable pricing model than competitors
  • Local presence in hiring markets
  • Strong vetting process
  • Focus on repeat customers who hire multiple roles