“Nobody buys farm based on whether they think it’s going to rain next year- they buy it because they think it’s a good investment over 10 to 20 years”.
Over a longer term, equity as an asset class has outperformed the other asset classes and helped in creating wealth for investors. Looking historically, it has delivered healthy inflation adjusted returns and helped investors to meet their desired goals.
During the journey, businesses go through various up and downs and in order to sustain the captain of the ship (i.e management of a company) should be competent enough to sail through such difficult times. However, not venturing out should also not be the objective of the management else he would end up preserving the ship at the port forever. Hence, keeping this in mind, under Super60 we strive to hunt for quality companies which have strong & predictable cash generation. Furthermore, as company managements play a pivotal role in the growth of any organisation, we tend to give more emphasis on the management’s integrity along with their competency to utilise available funds at its optimum level (high RoE, RoCE etc.).
After investing in quality stocks, we need to wait patiently and let the compounding do its magic, as rightly said by well-known scientist Albert Einstein “Compound interest is the eighth wonder of the world”. Thus, under Super 60 the investors can expect to generate wealth with benefit of compounding. Yes, it remains our task to switch any stock that derails or whose story does not play out during the course of investment.