Investing Style
Our Investment philosophy is often compared to Basant Maheshwari’s Strategy, we at Stallion have a lot of respect for him. Today i want to share our consistent strategy of creating wealth for our clients.
At Stallion Asset’s core is its Unique Philosophy of catching large trends in the Market. We are not interested in 10-20% up moves; instead look at buying companies that can give our clients multiple time (multibagger) returns. Our Niche lies in buying great Midcap companies which are often ignored by the Analyst Community.
How do we catch the Trend?
Our Investment Philosophy is backed tested by 22 years of Historical Research of the biggest wealth creators in any 3 year period starting 1994.
1)History has shown that Wealth is Created by following the below rules
2)Buy and Rotate Strategy beats Buy and Hold strategy.
3)Every Bull Market has a Different leader; we find the leader in every bull market and stick to it.
There is No Bull Market without Earnings Growth; we always buy sectors with high expected sustainable growth of more than 20% for next 3-5 years.
Winners of Previous Bull Market will not lead the next bull market.
We only buy companies that are making 52 week Highs, rather than new 52 week lows.
The more market believes in the longevity of growth, the more valuations the stock get. Longevity is often the mispriced portion in Capital markets.
What’s Our Buying Strategy?
We have a consistent strategy of only buying companies that fit our stringent Criteria of Growth at a Reasonable Price.
Can grow 25%+ for long periods of time
Can generate High Return of Capital Employed
Smart and Ethical Management Team
Competitive Advantage over competitors (Moat)
Low on Leverage
Reasonable Valuations
Free Cash Flow Generator
Why Sector Rotation?
In our historical research of last 22 years of the Indian Stock Market, we found out that in an Overall Bull Market 7 Sectors do well and 3 Sectors Underperform, whereas in an Overall Bear market, 3 Sectors do well and 7 Sectors Underperform. There has always been a bull market in atleast 3 sector in the market caused due to innovation, change in macroeconomic activity, change in Government regulation etc.
What is our Selling Strategy?
We are not traders. We recommend an investment only if we believe the stock can atleast double in next 12-18 months.
We sell only if one of these things happens:
1)Better Investment Opportunity
2)Story no longer Holds True
3)Extremely Overvalued
4)Long Term Breakdown in Stock, Sector or Market
