Investment Philosphy


When it comes to long term investing, we are well aware that it requires immense patience and conviction to hold onto a stock for years. The conviction can only come if it is backed by comprehensive research and understanding of the business, industry and macro economics. All our advice is backed by solid research because this is where our strength lies.

We put a lot of emphasis on "Capital Protection" and we have developed a robust and sound model for our portfolios. Our investing philosophy has 2 parts: Company and Portfolio.

Company

A typical that we invest in is selected based on multiple factors such as financial health, growth of both the industry and the company, valuations, etc. There are many statistical and fundamental models deployed to find the right investment for your portfolio!

Every company that we select is expected to be hold for atleast 3 years. We believe in the power of compounding and the ability of Indian businesses to create wealth.

Portfolio

A bad stock with a good portfolio allocation is a lesser harm than a good stock with a bad portfolio allocation. That is why we give so much emphasis to portfolio allocation. Our typical investment portfolio will have the following:

- Equities: This is what we primarily invest in for the long term. Each stock is backed by our solid research and high conviction. We invest in all types of companies - Microcaps, Smallcaps, Midcaps, Largecaps, Cyclicals, Compounders, etc. We are free from any bias.

- Bonds: We use bonds to park our funds when valuations are high (5.5% to 7% p.a.)

We strongly rely on the general market valuations (Nifty PE, Marketcap to GDP, etc.) to gauge future potential returns from equities.

Investor first approach

Providing investors with research reports and recommendations is not an easy task. Every investor has different expectations. Some want a new stock idea every month while some want to see double digit returns in a few months. Although, everyone says that they want to invest for the long term, short term volatility creates chaos in the minds and makes even the wisest investor question their conviction.

To be bias free, we do not have a tenure based research service i.e, we do not give a 6 month / 1 year service as there are times when we are not able to find good stocks at cheap to fair valuations. We want the least pressure possible to come out with a new research report.