The Stoic M.A.H.I Investment Philosophy
"In the realm of investing, the obvious is obviously wrong.
Our edge lies in seeing the invisible and doubting the apparent."
1. Wolves in Sheep's Clothing
We resist the allure of ‘optically’ cheap stocks, knowing that markets rarely reward businesses plagued by:
- Deteriorating industry dynamics
- Ethically compromised management
- Opaque corporate governance
- Discrepancies between reported and economic reality
- Fraudulent transactions masquerading as legitimate business
2. The Peril of Valuation Hubris
We remain vigilant against the twin dangers of:
- Overpaying for quality: Even stellar businesses can be poor investments at exorbitant prices
- Overlooking value in mediocrity: Unremarkable businesses can yield exceptional returns when acquired at significant discounts
3. The Achilles Heel of Poor Portfolio Construction
We understand that stock picking prowess alone doesn’t guarantee success. Mismanaged allocation can cripple even a portfolio of winners. Our strategy integrates stock selection with sophisticated portfolio-level management to optimize returns.
The Stoic Edge: Embracing Discomfort for Outsized Returns
Expanding the Circle of Competence
Sector-Agnostic Opportunism
We don’t play favorites with sectors. While acknowledging that some industries offer more structural tailwinds, we follow the evidence, wherever it leads. Our flexibility allows us to capitalize on opportunities across the entire market spectrum.
Market Cap Flexibility
The Power of Negative Thinking (Via Negativa)
- Charlie Munger once said, "All I want to know is where I'm going to die, so I'll never go there." We've taken this wisdom to heart. Our first step isn't to pick winners—it's to ruthlessly eliminate potential losers. This via negativa approach, inspired by Nassim Taleb's antifragile philosophy creates space for exponential growth, while reducing risk.
- But don't mistake our caution for timidity. When we identify quality businesses trading at reasonable valuations, we strike with conviction. Names like HDFC Bank, Bajaj Finance, and ITC in our portfolio are true testaments of our ability to recognize enduring quality amidst market myopia.