Investment

Our investment strategy is built on four interconnected frameworks that guide our decision-making process

Business Quadrant

Data-driven decision framework

  • Continuous Expansion of TAM by getting into newer markets and adjacent categories with a mindset of heads I win tails I don't lose much / looking for REINVESTMENT OPPORTUNITIES.
  • Focusing on companies who can make better Return on incremental capital employed rather than focusing on past ROCE’s.
  • Experiencing significant Competitive advantage Period in their respective industries.
  • Optionality's to hit Non linear scales with network effects and supply side advantages.


Management Framework

Systematic evaluation process

  • Efficient capital allocation
  • Clear distribution & retention policy
  • Good corporate governance and minority shareholder friendly
  • Prefer entrepreneurial leadership over professional management
  • Improving investor disclosures and accounting standards post new generation of promoters

Valuation Framework

Valuation Driven Motivation

  • The company’s stock should not discount the future too far out and have lofty expectations built into the price and there should be a margin of safety (in case things don’t play out as per our expectations)
  • Keeping an eye on Relatively outperforming sectors and companies by Monitoring Price Trends providing signals for ongoing shift in Fundamental Trends, either for good or bad
  • Downside protection most important
  • Always seeking Margin of safety by the price we pay and for the quality of business the valuations we are paying


Decision Making Framework

Strategic Choice Framework

  • Prudent awareness of biases and heuristics in decision making
  • Non-correlation and sell discipline
  • Striving to err on the side of caution
  • Focus on embedded expectations and alternative opportunity costs
  • Ground level presence & channel checks across ecosystems
  • Seek disconfirming evidence to negate one’s hypothesis

Business Strategy

Our business strategy focuses on identifying companies with sustainable competitive advantages and strong growth potential.

Market Expansion

Continuous expansion of Total Addressable Market (TAM) through strategic market entry and category expansion

  • New market penetration with calculated risk approach
  • Adjacent category exploration and expansion

Capital Efficiency

Focus on companies demonstrating superior returns on incremental capital employed

  • Strong competitive advantages in respective industries
  • Scalable business models with network effects