Inspired by investing veterans such as Ben Graham, Warren Buffett, Charlie Munger, Howard Marks and Phil Fisher, we are focused on Value Investing and GARP (Growth at a Reasonable Price) Investing. We are looking for fundamentally strong, growth oriented companies in India and US that are available at reasonable valuations. The pillars of our investment framework are described below:
A good sense of intrinsic value is important when investing. Our endeavor is to buy businesses well below their intrinsic value, so we have adequate margin of safety. As Mohnish Pabrai says, "Heads - I win, Tails - I don't lose much."
We focus on businesses with excellent management. Some of the metrics that makes management stand out for us are skin in the game, passion, efficient capital allocation decisions, excellent governance standards and focus on shareholder returns.
We make investments with a long term horizon and are willing to sit through periods of market volatility patiently to maximinze our investment returns. Compounding works best when it is given adequate time.
We look at investments from a risk reward lens where the inherent reward from the investment outweighs the risks. We focus on not just the bullish scenarios, but the bearish ones as well that the company can face to do this.
We seek companies that have a long runway for growth supported by expanding total addressable markets, durable competitive advantages, and a chance for margin expansion to increase earnings over time.
We size positions thoughtfully based on conviction, downside risk, valuation comfort, and the durability of the underlying business to be able to maximize our returns, but also minimize our downside risk in case our thesis goes wrong.
