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Ramdeo Agarwal 10 Philosophy

This document outlines MOAMC's investment philosophy of Quality, Growth, Longevity at a reasonable Price (QGLP). It seeks quality businesses with quality management, sustainable competitive advantages, and growth in earnings, volume and price over the long run (10-15 years). Key criteria include strong financials and ratios, competent leadership, healthy growth prospects, and reasonable valuation relative to quality and growth. The goal is to invest in companies that can extend their competitive advantage period and sustain growth.

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subham mohanty
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155 views22 pages

Ramdeo Agarwal 10 Philosophy

This document outlines MOAMC's investment philosophy of Quality, Growth, Longevity at a reasonable Price (QGLP). It seeks quality businesses with quality management, sustainable competitive advantages, and growth in earnings, volume and price over the long run (10-15 years). Key criteria include strong financials and ratios, competent leadership, healthy growth prospects, and reasonable valuation relative to quality and growth. The goal is to invest in companies that can extend their competitive advantage period and sustain growth.

Uploaded by

subham mohanty
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
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MOAMC Investment Philosophy

QGLP-Quality, Growth, Longevity, at reasonable Price

Quality of business x Quality of management Growth in earnings


Stable business, preferabiy comsumer tacing Volume growth

Huge business opportunity Price growth


Sustainable competitve advantage Mix chare
Competent management team Operacing leverage
Healthy fnancas & ratios Financal leverage
QGLP
Price Longevity-ofboth Q&G
Reasonabie valution, reative Long term relevance of business
to quaity& gowth prospects Extendingcompetitive advantage perid.
Hgh margn of uafety *initiatives to sustain ggowth for 10-15
vears
ira

Commandment #1
Invest in equities, don't speculate
Pa

Commandment #2
Don't time the market
P

Timing v/s Time in the market


Healthy returns across time periods

Inlast Sensex Return


1 year 74%
2 years 15%
3 years 16%
5 years 15%
10 years 10%
15 years 11%
20 years 14%
30 years 13%
40years 15%
MEDIAN 15%
Commandment #3
Master the power of compounding
Power of Compounding8

"Compounding is the 8th wonder of the world"


- Albert Einstein

20 0

20 4

Difference between
190
10 and 30 years is not
8 3
ax but 87
11 4,300

23 808 620 4201


Commandment #4
Learn to estimate value
Price v/s Value

"Price is what we pay, Value is what we get."


Warren Buffett

"In the stock market, most people know the price of


everything. but the value of nothing"
ra
P

Commandment #5
Buy only those businesses which
you understand
Warren Buffett's Investment Process

a) A business we understand;

b) Favorable long term economics;

c) Able and trustworthy management; and

d) A sensible price-tag.

2007 Annual Letter


Commandment #6
Assess the management thoroughly
look for integrity, competence and growth mindset
r
P

Importance of managemen

"In equity investing, management is 90%,


industry 9% and 1% everything else."
- Phil Fisher
Integrity-Competence Matrix
Both Integrity & Competence are critical

Camtee Trgn
Rce toZml
IwVESTMENTUNIVERSE
(Endaring Weoth Creator

griy Tr
Weah Oestroyer)
Mduret performers ot best

M
Pe

Commandment #7
Look for sustained Quality & Growth
Quality-Growth Matrix
Quality alone isn't enough

GROWTH TRAPS TRUE WEALTH CREATOS


Tranaitory Enduring
Multl-hgas Multh-bEEs

enoWT

wEALTH OESTROVERS QUAUITY TRAPS


Permanent cepitel less underperformers
Commandment #8
Don't overpay
Growth-Valuation Matrix

Look for High-Growth-Low-Valuation stocks

wALATIO

n.a
Gra
Page

Practise Margin of Safety


Margin of Safety is the Value-Price gap

Relevant extracts from Chapter 20 of The Intelligent Investor-


"The Margin of Safety is always dependent on the price paid.
It will be large at one price, small at some higher price,
nonexistent at some still higher price."
"In sum, we say that to have a true investment there must be
present a true Margin of Safety. And a true Margin of Safety is
one that can be demonstrated by figures, by persuasive
reasoning, and by reference to a body of actual experience"
Commandment #9
Have vision, courage & patience
Commandment #10
Read, read, read!
A ad

KnowledgeFirst!
Wide-range of readings on business & investing

FISAHER
MRK HATANAY
Valug
Camon Stodksnd
Investing
Uommcn Prolits

OMPETII
STRATEGY
S ALFRED APAeRT
lechniqa wCHALA MAROUSS
for Analy zing
Industries and VALUE NVESTING
Compctiturs MERATIO
Michacd F.Nrter
The 10 Commandments
1. Invest in equities, don't speculate
2. Don't time the market
-Timing the market is not important, timein the market is
Master power of compounding
-
the 8th wonder of the world
4. Learn to estimate value
-Price Is what you pay, Value is what you get
5. Buy only businesses you understand
ideally better than the owner himself
-

Assess the management thoroughly


-look for integrity, competence and growth mindset
7. Look for sustained Quality and Growth
-the biggest source of Wealth Creation
8. Don't overpay practise Margin of Safety
9. Have vision, courage & patience -Patience is the rarest of the 3
10. Read, read, read

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