Role of behaviour in long term investment performance
Investor behaviour is as much a determinant of long term investing success, as a fund manager’s skill in building a portfolio.
Read MoreThe pain associated with being a long term investor
Our investment process emphasizes focus on “Secular and Structural” growth opportunities vs “cyclical” ones. Secular and structural implies growth irrespective of economic conditions while cyclical implies opportunities that will be affected by trends.
Read MoreInvestment Perspectives: Define your Guiding Principles
A prominent research house gave a bearish call on the market at the end of February. Despite the Index climbing over 16% in the past 2 months, the firm stuck to its guns.
Read MoreBeware the enemy within
We have found the enemy and he is us
The chart below shows the time the NIFTY has spent in its historical trading bands of between 10-29 trailing earnings.
Read MoreCaveat Emptor
Complex products earn higher upfront commissions for Wealth Managers. Hence, there is frequent mis-selling of such complex financial products to investors.
Read MoreMeasuring fund manager performance
Different managers follow different styles and approaches. By implication, their portfolios carry different levels of risk. The common wisdom at present is to compare manager performance using the “Sharpe Ratio” which compares the return generated per unit of risk taken.
Read MoreInvestment strategy at the current juncture
A simplistic view taken by many analysts at present is that the Nifty is trading near its 10-year average valuation (see chart below) and hence, one should still be fully invested.
Read MoreUsing the impatience of others to your advantage
Threat of a poor monsoon, and fear of reduces MSPs for crops to control inflation seems to have got Dalal street in a tizzy with many brokerages recommending investors stay off Rural plays.
Read MoreThe importance of cash generation over growth
We often get queried by prospective clients why Cash Generation is a “Gate” in our stock selection and why we emphasize Cash Generation over Growth. After all, Flip Kart is being valued at many Billions of dollars because of growth prospects and burns boat loads of cash.
Read MoreMy 3 biggest learnings working with Rakesh Jhunjhunwala
I was fortunate to have an opportunity to work with and be mentored by the great investor and trader, Rakesh Jhunjhunwala, for 8 years.
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