Some underlying principles we follow -
- De-risking happens by growth rate and valuation, not by the size of the company
- Quantum of profit / revenue has little significance. What matters is the growth rate of that profit or revenue.
- It’s much easier to grow a profit of 10 Cr to 100 Cr than to grow 1000 Cr to 10,000 Cr. Though the % growth rate remains the same in both cases [and our return as well].
- Companies purchased on a cheap valuation have a distinct advantage wherein value provides a cushion w.r.t. downside risk.
With the above principles in mind,
- We focus on the intersection of growth and value. Click here to go through the complete strategy in detail.
- We focus on small companies, with a potential to become large companies in future. Such a company shows clear symptoms w.r.t. a very high growth rate of earning & revenue.
- We might also have a sector-specific focus at different points in time.
- We focus on Weekly and Monthly charts only.
- We focus on Price Action rather than indicators or averages.
- Our strategy is more Momentum than Value Investing. We believe in buy high, sell higher rather than buy low, sell high.
- As we marry Technicals with Fundamentals, we don’t exit our stocks too frequently.