Our philosophical inclination is for compounding opportunities that investors can take advantage of, for a superior compounding of their capital. This purpose is intricately linked to

We look for companies that have strong fundamentals and are run by efficient and farsighted management. Another necessary requirement is to buy such businesses at what we believe are reasonable valuations. This is achieved by gearing up our research processes to identify investment ideas on the basis of size of opportunity (growth characteristics), capital efficiency and a formidable competitive advantage that makes the business model robust.

The philosophy is characterized by a focused and disciplined way to long term wealth creation by investing into outstanding and undervalued businesses. Our investing mindset is that of running a marathon over a sprint underscoring our long term focus. We seek to achieve this by concentrating on the core fundamentals on one hand, and by being alert and agile to the changing landscape on the other.

The conceptual framework of our investment philosophy is influenced by, and is a blend of two distinct approaches to long-term investment - 'value approach' and 'growth approach'. This blend is best described as GARP (Growth at reasonable prices). To us, the supposed dissonance in growth and value does not exist. In fact, we believe growth is a subset of value. We make buying decisions through a framework that lays due emphasis on growth characteristics while deriving the total intrinsic value of the security. Mere cheapness of a security does not excite us if the business itself is not growing; and mere growth is not something that we engage in either, unless is available at reasonable prices.

Each security in our investment universe is subjected to analytical rigor to derive its intrinsic value. The intrinsic value acts as the guiding post for our buying and selling decisions at the security level. We aim to buy securities at a discount (margin of safety) to this derived value. The margin of safety required varies across securities depending on our perception of risk quotient inherent in the business and in the security. At the portfolio level, this translates into a focused but diversified assortment of securities selected from our investment universe, where reasonable price-value gap exists and which should translate into a long-term superior compounding.

Being strong believers in the virtues of active management, we review our intrinsic values on an ongoing basis. Intrinsic value is a dynamic concept that should respond to changing situations in the macro climate, the individual security or a combination of both. The portfolios are reviewed continually to ensure that they represent the best possible permutation of price-value gaps in our tracked universe. This does not mean high portfolio turnover, but a more involved investment management that ensures a correct reflection of current view in the portfolios and ensures responsiveness.