Investment philosophy adopted by Midcapmantra Investment advisory is primarily guided by the value investing priciples which includes buying scrips at a discount to intrinsic valuation. The value investing theory is made popular by Legends Benjamin Graham,Warren Buffett, Charlie Munger. Whenever scrip is bought, we are not only buying the shares of the company, we are owning the company at fraction. So when we buy any scrip, we think as if we are owner of the business. Ignoring vagaries of Mr.Market, we stick to the right picks in good and bad times.
Tantrums of Mr. Market actually offer wonderful opportunities of buying and selling scrips at discount/premium. The irrationality is primarily outcome of market fluctuations and pendulum swings from extreme pessimism to extreme optimism.
While selecting scrips in portfolios key points we consider are :
Margin of Safety, Economic Moat (Durability and sustenance), Quality and vision of Top management, Return on capital employed (and return of capital too ;-))
These chosen strict criteria help us to deliver superior returns over time. As said by Mr. Warren Buffett : “Time is the friend of the wonderful Company, the enemy of the mediocre”