Short Note on Methodology

June 17, 2023

There are several ways to make money in equity markets. Under this umbrella, there is a broad range of investors, securities, and trading/investment styles. On one extreme, there are investors who buy and sell maybe once a year or even less while the other end is full of traders who earn their living buying and selling multiple times in a day. Somewhere in this range, we find a place for ourselves. Not active on a daily basis but I’m certainly not in the ‘buy and forget’ camp either.

I follow a 4-step process, deeply rooted in fundamental analysis, to arrive at a shortlist of investment options

Overall aim is to generate index-beating returns and make ample use of quantitative factors such as P/E ratio, ROCE, Debt profile, qualitative factors such as industry structure, runway for growth, and corporate governance.

If you have made it so far, you might also be interested in reading my investment philosophy.