Investment Philosophy and Approach

When it comes to investing there are two distinct philosophies namely “Growth or Momentum Investing” and the “Value Investing”

  • I believe that any investment decision should definitely take in to consideration the future growth of the company
  • The valuations or the price at which it is available
  • An assessment of whether the future growth is factored in the price already or not.

Just buying something if it is cheap would not be a good approach as many a times these Value buys turn in to Value traps if the future growth potential is low.

There are two distinct approaches - Long Term and Short Term When it comes to people’s preferences when buying stocks. Some investors tend to remain invested over a long period of time, while some are interested in churning out their investments from time to time by booking profits and re-investing the same.

In my opinion, both these approaches are fine so long as one is generating sizeable amount of returns over a particular time.

Depending on One’s risk-taking ability and the time horizon (Largely driven by Patience), I identify stocks which suit his/ her requirement. For doing so, I use Fundamental analysis.