Few Good Quality Stocks Are More Than Adequate To Generate Big Wealth
Our Stock Picking Style and Philosophy
Our Investment Approach is very simple – Few good quality stocks are more than adequate to generate big wealth. This is what we keep on telling our clients. There is just no need to jump from one stock to another, in search of the next HOT stock.
Buying companies with a strong business model, which are small and medium in size but having solid growth potential.
Invest in companies generating healthy ROCE, ROE, strong Operating Cash Flows, Free Cash Flows and enjoying reasonable debt levels.
Exploring companies which are sector leaders or the potential to become large, and which have headroom to grow significantly over the next 2-3 years looking at the overall opportunity size for the company’s products & services.
We look at companies which can grow consistently in terms of Topline & EBIDTA growth and where management respect shareholders & are investor friendly in terms of payouts in the forms of dividends, bonus, buybacks etc
We buy stocks of such companies when they are unglamorous and not in the limelight.
Most importantly we believe capital preservation is more important than returns and hence apply a reasonable margin of safety filter to protect the down side if any.
We understand the proper way to view the markets and your portfolio and show you the simple strategies that make investing more profitable, less confusing, and less time-consuming. Without the burden of short-term performance benchmarks, individual investors have the advantage of focusing on the long view, and the freedom to construct the kind of portfolio that will serve their investment goals best.
Complexity is often used as a mechanism for talking investors into unnecessary purchases when all most need is a deeper understanding of conventional options and that’s what we at Profitmart believe it
This sounds really simple, but to practice it in real world is a tough job. Markets tend to tempt us with their daily ups & downs & investors are bound to make mistakes. These common mistakes are the only difference between successful investors & the unlucky ones. As they say, investment is 1% skill & 99% temperament.
Our Fundamental Research product enables our subscribers with SUPERIOR INFORMATION to invest in companies that are small today &have the potential to become big tomorrow. We focus on companies that have a scalable business model & exponential growth path; companies that have the ability to gain pricing power and where there is high margin of safety; these factors helps them to become market leaders in their segment.
We enter the stock with an initial target on it. If the company performance is better than our expectations, the targets are revised upwards depending on the financial performance & outlook at that point of time. If the company performs below the expectations or all the hopes of performance revival are gone, we exit the stock. There is no downward revision in the stock price.
If we think, that the best is behind the company from present levels, we simply exit the stock & move on & Vice versa, if we think that the best is yet to come. We may delay the exit decision and hold on to the position even if the desired target has been reached. We follow a policy of releasing new stocks to our universe but also wait for fresh buying opportunity as and when it arises.