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Investment Framework

  •  1. Invest in 8-10 names. Lesser the better. No less than say 4. Otherwise it is not possible to be on top of the companies nd have any sort of informational advanatage
  • 2. Invest in great companies at a fair price.
    • Great quality business. Competitive adavantage/moat. ROE/ROCE is good
    • Growth (past) and future long runway with growth visibility
  • 3. Valuation: First do Business Analysis. Understand various levers which will affect the business. Then valuation can be just a quick mota -mota thing. Like for eg. seeing a person from distance, u can say a person is fat. U don't have to know his weight. Similarly, valuation can be a back of the envelope thing, once u do the business analysis appropriately. Think of bull, bear, base scenarios.

 

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