Investment thesis on Yasho Industries

The coming decade will see many great companies emerge out of India in Manufacturing.  This will not be because of cost arbitrage alone, but from genuine capabilities companies have developed which will be of relevance to global buyers seeking credible “win-win” partnerships. 

Good companies will use the cash flow to re-invest and create virtuous cycles where they could grow profits at 20-25% for a decade. 

If we can identify a bunch of cos that can do this, even if one assumes some errors, we will get a very good result.  However, one must be willing to stretch time.  With small companies, results are seldom linear. 

Enclosed is a brief note to explain our thought process underlying this investment

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Investment thesis on IndiaMART InterMESH

A key attribute of our firm’s culture is the focus on writing a detailed investment thesis on every position of interest.  Writing clears the cobwebs in our minds and allows us to get more specific feedback from peers we respect.  It also reduces the chances of errors. 


IndiaMART is a company we have owned since 2020.  We enclose a more detailed thesis that explains why we believe this company can provide Asymmetric outcomes this decade and why the trailing PE ratio, often used as a valuation proxy, provides an erroneous representation of IndiaMARTs true value. 

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Rationale for trimming position size in Life Insurance to 15%

We had an overweight position in Life Insurance (upto ~20% allocations in some accounts).   We find this to be a very attractive industry and found valuations strongly in favor when it was hard to find value elsewhere.  However, the industry has seen two regulatory actions in the last 24 months on tax saving products. 

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