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To Know more about our offline PMS - LINK
Dear Members of TMP/MMP Portfolio,
Markets have pulled back smartly with a more than 10% rally, since the start of the year. The broader markets and the heavily beaten down stocks have risen sharply in the past few weeks. Whether it is a bear market rally or the start of a genuine up trend, will be known only in hindsight. Timing the market is an extremely difficult task and instead, what smart investors do is to pick the right companies at a discount to their intrinsic valuation.
Present market conditions are an absolute stock pickers delight. We like to see this environment as, “High uncertainty, Low risk and High rewards”. This enables us to select stocks which can create good value for investors over a period of time. Our team is working hard by digging into the markets to find such stocks which can outperform the market and give good returns to our portfolio.
Though the last 14 months have been pretty bad for the markets, we feel this is a temporary phenomenon and investors who invest during such times will be those who reap rich rewards. Markets always go through these phases of extreme pessimism and optimism . This huge volatility helps investors to profit by buying cheaply in a depressed market and selling in a bubble. As Warren Buffet rightly said, “Buy Fear and Sell Greed”.
Three things which we must remember and be convinced is the Indian growth story, Power of compounding and the potential of equities. India in spite of its challenges its growing at a healthy pace and provides numerous opportunities for companies to exploit profitably. There is no doubt that the Indian stock markets are in a long term uptrend with very strong fundamentals.
Stock Markets are non-linear and returns are very lumpy. Hence, it is required to be invested over a period of time to get a good compounded return. Companies which can grow sustainably at a compounded rate of 20-25 % can create enormous wealth for investors. Equities as an asset class has always outperformed others like real estate, gold, FD’s etc in the long run and in a developing country like India this is expected to continue for the next several years.
This in no ways means, you can buy any stock and hold it in expectation of good returns. The most important part lies in selecting the right business at a good price. We have picked up 2 such companies in this report which will help our portfolio to earn better returns. We intend to slowly increase our portfolio allocation in the next 3 months. Portfolio tuning is a continuous process and markets requires us to be alert with an ability to react and take better decisions.
We are having a close eye on our portfolio companies and intend to allocate capital to the best stocks possible. Portfolio management is not a sprint, but a marathon and we through this Offline PMS intend to help you in managing your portfolio better with little effort by replicating us. We look forward to running this marathon better with your support.
Regards,
Gokul Raj . P, Portfolio Manager
To Know more about our offline PMS - LINK
Dear Members of TMP/MMP Portfolio,
Markets have pulled back smartly with a more than 10% rally, since the start of the year. The broader markets and the heavily beaten down stocks have risen sharply in the past few weeks. Whether it is a bear market rally or the start of a genuine up trend, will be known only in hindsight. Timing the market is an extremely difficult task and instead, what smart investors do is to pick the right companies at a discount to their intrinsic valuation.
Present market conditions are an absolute stock pickers delight. We like to see this environment as, “High uncertainty, Low risk and High rewards”. This enables us to select stocks which can create good value for investors over a period of time. Our team is working hard by digging into the markets to find such stocks which can outperform the market and give good returns to our portfolio.
Though the last 14 months have been pretty bad for the markets, we feel this is a temporary phenomenon and investors who invest during such times will be those who reap rich rewards. Markets always go through these phases of extreme pessimism and optimism . This huge volatility helps investors to profit by buying cheaply in a depressed market and selling in a bubble. As Warren Buffet rightly said, “Buy Fear and Sell Greed”.
Three things which we must remember and be convinced is the Indian growth story, Power of compounding and the potential of equities. India in spite of its challenges its growing at a healthy pace and provides numerous opportunities for companies to exploit profitably. There is no doubt that the Indian stock markets are in a long term uptrend with very strong fundamentals.
Stock Markets are non-linear and returns are very lumpy. Hence, it is required to be invested over a period of time to get a good compounded return. Companies which can grow sustainably at a compounded rate of 20-25 % can create enormous wealth for investors. Equities as an asset class has always outperformed others like real estate, gold, FD’s etc in the long run and in a developing country like India this is expected to continue for the next several years.
This in no ways means, you can buy any stock and hold it in expectation of good returns. The most important part lies in selecting the right business at a good price. We have picked up 2 such companies in this report which will help our portfolio to earn better returns. We intend to slowly increase our portfolio allocation in the next 3 months. Portfolio tuning is a continuous process and markets requires us to be alert with an ability to react and take better decisions.
We are having a close eye on our portfolio companies and intend to allocate capital to the best stocks possible. Portfolio management is not a sprint, but a marathon and we through this Offline PMS intend to help you in managing your portfolio better with little effort by replicating us. We look forward to running this marathon better with your support.
Regards,
Gokul Raj . P, Portfolio Manager
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