An investment philosophy is the approach towards markets. It includes all investment strategies under which fund is going to run. It is the core set of investment team's belief to run a fund.
Our investment philosophy is based on core principles of value investing.
This quote from investment legend Warren Buffet "Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." is the soul of our investment philosophy.
Margin of Safety
We follow the margin of safety principle before buying any stock. Margin of safety is the principle of buying a security at a significant discount to its intrinsic value which is thought to not only provides high-return opportunities but also to minimize the downside risk of an investment.
In the words of the great investment legend, Benjamin Graham, margin of safety is to buy assets worth $1 for 50 cents.
We want to buy less businesses but very good businesses with sound fundamentals, long term sustainability and excellent corporate governance. We do lot of due diligence before making any buying decision. We believe that superior and consistent returns can only be achieved by recognizing long term trends in the specific sector, and understanding the structural shifts that affect these trends. Numerous studies show that most of a company's value is determined by its long-term performance, and in our view a short-term orientation has significant negative repercussions.
Extraordinary returns follow extraordinary discipline. Discipline in buying and selling, and may be the most important one of all, holding. Holding needs more discipline than buying and selling. We always try to buy cheap with a view to hold stocks for very longer periods of time unless there is any change in our basic thesis for the given business.
As per Thomas Phelps, Fortunes are made by buying right and holding on.
Our philosophy is to focus on core value investing principles. We seek to benefit from inefficiencies of the stock market by following a disciplined and process driven approach. A calm patient and rational temperament coupled with strong research is key to execute this philosophy.
'Be Fearful When Others Are Greedy and Greedy When Others Are Fearful' - Warren Buffet
'It's bad to go to bed thinking about the price of a stock. We think about value and company results; the stock market is there to serve and not to instruct' - Benjamin Graham