🗣️ Investor Talk #46: Dimitry Nakhla

Founder & Portfolio Manager Babylon Capital

Jun 09, 2025

Welcome to Investor Talk — where we interview successful investors to uncover their journeys, strategies, and the lessons they've learned. Get inspired by real stories and gain valuable insights to sharpen your own investment approach.

Every interview follows the same set of sharp, insightful questions — such as “What is your investment strategy?”, “What are your highest conviction stocks?”, and “What’s the biggest investment mistake you’ve made?”

👉 Check out all previous Investor Talks here
Including interviews with Brian Feroldi (Founder - Long Term Mindset), Shay Baloor (Host of Stocktwits) and Gav Blaxberg (CEO - WOLF Financial).

In this edition, we have the pleasure of interviewing:

Name: Dimitry Nakhla @DimitryNakhla
Age: 30
Residence/Country: New Jersey, USA
Invests since: 2016

𝗜𝗻𝘁𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝗼𝗻
I am the founder and portfolio manager at Babylon Capital®, a firm I established in 2017 with $800,000 in assets under management. Today, I’m deeply honored to manage over $20 million, a milestone that reflects the trust my investors place in me and the disciplined, rigorous, quality-driven approach we uphold at Babylon Capital®. Complementing my work in finance, I earned my law degree in 2020 with a certificate in corporate and business law, a demanding pursuit that honed my analytical rigor and deepened my understanding of the structures that underpin markets and businesses.

I was introduced to the stock market in 2016—an encounter that sparked an immediate and enduring obsession. To me, the stock market is one of the most intellectually stimulating arenas to engage with. It is like a 1,000-piece puzzle, where each piece subtly shifts in shape and size daily, yet the broader picture holds steady. It’s an intellectually exhilarating challenge that requires discipline, insight, and adaptability.

𝗪𝗵𝗮𝘁 𝗶𝘀 𝘆𝗼𝘂𝗿 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝘀𝘁𝗿𝗮𝘁𝗲𝗴𝘆?
My investment philosophy centers on identifying businesses with wide, defensible moats — driven by competitive advantages such as high barriers to entry or significant switching costs — that enable them to sustain elevated returns on invested capital over extended periods.

These competitive strengths often manifest in characteristics like strong pricing power, margin expansion, and the ability to reinvest at high rates of return. I prioritize companies with robust balance sheets, a proven track record of consistent growth in free cash flow and earnings per share, and underlying structural reasons that support their ability to deliver predictable, linear growth over time.

𝗛𝗼𝘄 𝗺𝗮𝗻𝘆 𝘀𝘁𝗼𝗰𝗸𝘀 𝗮𝗿𝗲 𝗰𝘂𝗿𝗿𝗲𝗻𝘁𝗹𝘆 𝗵𝗲𝗹𝗱 𝗶𝗻 𝘆𝗼𝘂𝗿 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼?
Today my portfolio consists of 16 businesses, with a deliberate concentration in my top four positions:
$V - Visa
$MA - Mastercard
$ICE - Intercontinental Exchange
$SPGI - S&P Global

These four positions collectively represent ~40% of my overall allocation.

𝗪𝗵𝗶𝗰𝗵 𝘀𝗲𝗰𝘁𝗼𝗿𝘀 𝗱𝗼 𝘆𝗼𝘂 𝗺𝗮𝗶𝗻𝗹𝘆 𝗳𝗼𝗰𝘂𝘀 𝗼𝗻?
While I do not anchor my investment approach to specific sectors, I maintain a disciplined focus on identifying the highest quality businesses, often favoring industries with structural advantages — such as software companies with recurring revenue, or financial data, stock exchanges, and financial technology firms that benefit from network effects and high barriers to entry — while generally steering clear of sectors like banking, airlines, or commodities that face greater cyclical or competitive pressures.

That said, I remain open to exceptional opportunities across all industries; for instance, although I typically avoid home building, I recognize that overlooking a sector entirely might mean missing a standout business like $NVR NVR Inc., which benefits from a uniquely resilient business model that distinguishes it from traditional home builders. Ultimately, my priority is to deeply research and invest in best-in-class companies, regardless of their sector.

𝗪𝗵𝗮𝘁 𝗮𝗿𝗲 𝘆𝗼𝘂𝗿 𝗵𝗶𝗴𝗵𝗲𝘀𝘁 𝗰𝗼𝗻𝘃𝗶𝗰𝘁𝗶𝗼𝗻 𝘀𝘁𝗼𝗰𝗸𝘀?
$MA - Mastercard
$MELI - MercadoLibre
$SPGI - S&P Global

𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝘀𝘁𝗼𝗰𝗸 𝗶𝗻 𝘆𝗼𝘂𝗿 𝗽𝗼𝗿𝘁𝗳𝗼𝗹𝗶𝗼 𝘄𝗶𝘁𝗵 𝘁𝗵𝗲 𝗵𝗶𝗴𝗵𝗲𝘀𝘁 𝗿𝗲𝘁𝘂𝗿𝗻?
$ICE - Intercontinental Exchange +100%

𝗪𝗵𝗮𝘁 𝗶𝘀 𝘁𝗵𝗲 𝗯𝗶𝗴𝗴𝗲𝘀𝘁 𝗶𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗺𝗶𝘀𝘁𝗮𝗸𝗲 𝘆𝗼𝘂 𝗵𝗮𝘃𝗲 𝗺𝗮𝗱𝗲?
My biggest investing mistake was prioritizing valuation over the quality of a company.

That said, I don’t disregard valuations or pay any price for a business; instead, I focus on identifying high-quality companies first, then conduct a thorough valuation analysis.

𝗠𝘆 𝗳𝗮𝘃𝗼𝗿𝗶𝘁𝗲𝘀
Favorite book: What I Learned About Investing From Darwin by Pulak Prasad

Favorite podcast: We Study Billionaires from The Investor’s Podcast Network @TIP_Network

Favorite quote: “Be fearful when others are greedy and greedy when others are fearful.” - Warren Buffett

Favorite FinX account: Long Equity @long_equity

𝗪𝗵𝗲𝗿𝗲 𝗰𝗮𝗻 𝘄𝗲 𝗳𝗶𝗻𝗱 𝗺𝗼𝗿𝗲 𝗶𝗻𝗳𝗼 𝗮𝗯𝗼𝘂𝘁 𝘆𝗼𝘂?
You can DM me on X @DimitryNakhla or reach me by submitting this form on my website babyloncapitalmgmt.com/newsletter/

That’s a wrap!
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🗣️ Investor Talk #46: Dimitry Nakhla

Founder & Portfolio Manager Babylon Capital

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