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

Why are Gold prices rising

We are an Equity fund house.  We will not be buying Gold in portfolios. However,  I would like to share my understanding of why Gold prices are doing well and why they should continue to do well. 

Gold has no attraction to fundamental investors as it generates no cash flow.  However, Gold has served as a store of value.  Here is the empirical evidence.

Read More

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

Read More