Investment Process
Our investment process endeavours to deliver healthy long-term returns while minimizing risk. The steps we follow include:
- Screening CompaniesWe begin by identifying companies that meet our investment criteria
- Detailed EvaluationFrom the list above, we study the ones of interest - analysing their business models, market positioning, reputation, management, financials, and governance.
- Creating a Wishlist and a Fair PriceBased on the in-depth analysis, we compile a wishlist of companies exhibiting traits that align with our desirability framework, and estimate a fair valuation.
- Maintaining Pricing DisciplineWe aim to buy at prices below the fair value or at lower end of the estimated intrinsic value range
- Retaining or exiting InvestmentsOnce investments are made, they are retained until compelling reasons to sell arise. These reasons include: a) the value of the investment growing significantly and becoming disproportionately large within the portfolio, or upon b) identifying a superior alternative investment opportunity, or if c) our updated understanding of the business and its evolving business realties no longer make it a desirable investment
Our process often requires us to challenge prevailing market sentiments regarding a company, its sector, or the market as a whole. The conviction to act against conventional wisdom stems from conducting a diligent job in the study phase.
By adhering to this disciplined approach, we aim to ensure prudence and healthy returns in the long run.
