For any listed company there are several variables at play – external events like macroeconomic variables, competition, disruptions, FII / DII flows or company specific events like valuations, change in management, capital allocation decisions or personal factors such as the investor’s purchase price (and hence unrealised gains or losses currently), capital gains tax liability, risk appetite, financial goals and hence expected returns etc.
There are several mysteries that an investor faces while deciding which stocks to buy, and when to buy (or sell). He to whom this emotion is a stranger, who can no longer pause to wonder and stand rapt in awe, is as good as dead: his eyes are closed.” – Albert Einstein It is the source of all true art and all science. “The most beautiful thing we can experience is the mysterious. The Maths, Science and Art of investing in equities (and hence in Consistent Compounders) The latest performance of our PMS and offshore fund (USD denominated) portfolios is shown in the charts below. Based on this understanding, we construct a concentrated portfolio of companies with an intended average holding period of stocks of 8-10 years or longer. Our research team of eleven analysts focuses on understanding the reasons why companies in our coverage universe have consistently delivered superior financial performance. We have a coverage universe of around 25 stocks, which have historically delivered a high degree of consistency in ROCE and revenue growth rates.
#RAPT STOCK FORECAST UPDATE#
Performance update – as on 30 th November 2020 In fact, rigorous tools are the key factor which allow a small minority of investors to attain the objective of Consistent Compounding (even as the vast majority of investors live life at the mercy of Lady Luck). Whilst decisions based on myths or one’s personal beliefs exposes an investor to more luck than skill, a rigorous hunt for mathematical and scientific tools helps the investor reduce the contribution of luck and enhance the probability of success. Maths, Science and Art are subjects that have improved our ability to understand the complexities of the world around us. The variables at play are numerous – not just the macro and micro variables relevant to a stock, but also the psychological factors facing an investor. Equity investing can be a complex business.