Our approach for constructing client portfolios.
The core of our functioning
Our Investment Approach
Long Term Investment
Takes emotions out of the equation.
The power of compounding is more evident over a longer period of time.
Focus remains on business performance rather than price performance.
Leads to creation of wealth.
Helps in avoiding timing the market and reduces the impact of market fluctuations.
Lowers the overall investment risk.
Our ‘Buying’ Approach
Businesses with sizeable growth opportunity.
Companies that can fund growth through internal accruals.
Good management quality.
Bottom-up approach.
High margin of safety offering good risk reward (capital protection).
Good understanding of the business and selecting stocks within our area of competence.
High conviction/concentrated portfolio.
Our ‘Selling’ Approach
Change in the business dynamics. These are monitored and studied regularly and closely.
Change in the strategy of promoters of the portfolio stocks.
High valuation which could limit further capital appreciation.
Attractive alternate investment opportunities.
The core of our functioning
Our Investment Style
We may adopt one or more of the following investment styles for constructing equity portfolios.
MARGIN OF SAFETY
We identify and invest in businesses with high growth potential but at a reasonable price, which gives us margin of safety. We do not chase stocks at any valuation.
CONTRARIAN
Based on thorough understanding of a particular business and to invest at the optimum valuation, we may take a contrarian view (buying when others are selling and selling when others are buying).
STRUCTURAL
We may invest in businesses where the growth opportunity is structural in nature.
CYCLICAL
For a cyclical opportunity, we typically look at buying a business with the best cost efficiency in the industry and manageable level of leverage, if any.
VALUE
We may invest in a business which offers deep value. These are the businesses where the assets are generating lower returns due to external factors and are available at a significant discount to their replacement value.
MARGIN OF SAFETY
We identify and invest in businesses with high growth potential but at a reasonable price, which gives us margin of safety. We do not chase stocks at any valuation.
CONTRARIAN
Based on thorough understanding of a particular business and to invest at the optimum valuation, we may take a contrarian view (buying when others are selling and selling when others are buying).
STRUCTURAL
We may invest in businesses where the growth opportunity is structural in nature.
CYCLICAL
For a cyclical opportunity, we typically look at buying a business with the best cost efficiency in the industry and manageable level of leverage, if any.
VALUE
We may invest in a business which offers deep value. These are the businesses where the assets are generating lower returns due to external factors and are available at a significant discount to their replacement value.
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