When we talk about investments, every investor has his own approach, in simple terms the numbers do matter but what matters the most is your own conviction about the particular idea. I mostly put my faith into, apart from analytics on my sixth sense which I call it the “Y” in me. The “Y” is my light house in the investment ocean, giving purpose and direction to my ventures. “Y” is nothing but an integration of my business acumen, people skills and foresight.
My Investment Strategy.
Frankly speaking I look for value creation more than wealth creation. Wealth creation sounds too materialistic. The Idea of value creation is more holistic and inclusive. Given my ideology of creating a parity in the social space through my investments, I primarily look at long sustainable businesses and ideas which not only focus on creating wealth but also look at creating superior brand equity through sustained efforts of ethical business practices in a way that it they impact every stake holder positively.
Evaluating a business
Value Permanence Potential Stage Cost
I feel value creation is more important than product creation, any business with focus on value creation for its customers investors and employees is important. The Ideology of sustenance has to be at the core. The Business which focus on superior products, customer satisfaction, foresight and has adaptability to changing business scenarios by addressing porter’s five forces in such a way that balance of power is always on their side will end up creating quality business
If I am betting my money in the horse race I would definitely like to know who am I up against. I avoided over crowded competitive space and if I somehow do explore this space, it better be a unicorn. For me there is no short cut to value creation, my belief is in long term bets only . So its wise enough to give weightage to business who are carefully sculpting their niche in such a way that they able to impart longevity to their business and they are able to do this year after year.
I am a capital provider, of course I would look at return on capital as a key parameter. But when I say so let me emphasise on the fact that not only its important that ROC is good but the cash generated through returns should also get reinvested at similar or better returns, the businesses who can do it year after year successfully are my choice.
I have basket approach when it come to stage of investment ideas. I love early stage bets on proven ideas as 30 percentage of my portfolio, Another 40 Percent on exponential stage and rest on Giants.
Cost is a also a factor but not a decisive factor because, to my understanding, any thing of quality and superior value won’t come cheap. A fair price is what I look at keeping in mind future potentials of the business.