Moving forward with strategy, not with emotion – our view on investing in Small and Mid Caps at present

Last week, S Naren, CIO of ICICI Pru MF and a market veteran we respect immensely, warned investors about exuberance in Small and Mid-Caps. His statement “we think it is a clear time to take out lock, stock, and barrel from small and midcap” created quite a stir on social media.  “With great power comes great responsibility” and we endorse the general warning that Naren is dispensing to the price agnostic retail investor. 

However, our views on investing in Small and Mid-Caps today are more nuanced, and we share our specific stance on this subject below.

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Stillness, backing a mission oriented promoter and the rewards of good Karma – Rakesh Jhunjhunwala’s incredible 340x returns in Inventurus

Inventurus Knowledge Solutions, a company promoted by Sachin Gupta and the late Rakesh Jhunjhunwala in 2006, is expected to list in the next 2 weeks.  The grape vine has the IPO valuation of the company pegged at between 20000-25000 Cr. If we take the mid-point of that range, the original investment has compounded ~ 340x for the Jhunjhunwala family in the last 17 years, an IRR of 41%. This adds to the long list of 100 bagger returns generated by him. 

Why can’t more of us be like him? Other than the ability to see the future with more clarity, what attitude is needed to earn such returns?

Stillness by deliberate choice. Read More

What I learned from Rakesh Jhunjhunwala

Rakesh Jhunjhunwala, India’s favourite investor, passed away yesterday at the young age of 62.  The world knows him for his wealth, his passion for investing and for his wit. I am privileged to share a side of him not many knew by virtue of my association at his family office “RARE” between 2006 to 2014 and the mentoring I benefited from till his last days.

Rakesh “Bhaiya,” as he was affectionately referred to, was perhaps the strongest believer in the India growth story that I have known.  His reasoning was India’s democratic roots and consensus-based approach meant growth would be more long lasting and gain momentum with reforms.

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