Founded in 2012 as a value oriented multifamily office catering to a private group of family and friends, Compound Everyday Capital became a SEBI registered Portfolio Manager in 2019. Significant part of the world’s wealth is created by business enterprises. Our aim is risk adjusted wealth creation by owning good businesses run by able and honest managers for long term. We are risk conscious, humb
le, research driven, sector/market cap agnostic, long term oriented, small and we absolutely love what we do. These attributes, we believe, are the source of our sustainable competitive advantage. We understand the power of compounding. We consider following areas important for our performance – trust building, multi disciplinary reading, business model understanding, analysing behavioural biases in business/investing and learning from our and others’ mistakes. By striving to improve on these areas daily, we Compound Everyday! Investment Philosophy
Value Oriented
We invest based on value investing principles with an emphasis on protection of capital. We see stocks as part ownership in earnings and net assets of underlying businesses. We believe every business has an intrinsic value that is shaped by and changes with the interplay of market, management and luck. Stock price – a manifestation of human emotions, while reflects the intrinsic value over long run, is like an emotional pendulum in the short run which often materially diverges from intrinsic value. We buy at or below intrinsic value and like seeing that value grow over time. We believe that the trio of our long term orientation, human emotions (fear) and institutional disinterest will keep giving us opportunities to do that. Research Driven
We undertake dispassionate, independent bottom up business analysis for assessing intrinsic values. We realise that intrinsic values are difficult to assess. We therefore limit ourselves to businesses that have competitive advantage in areas of our circle of competence and are run by able and honest management. Our assessment of management involves detailed study of capital allocation, corporate governance and accounting track record. Beliefs
We donot believe in 'the Efficient Market Hypothesis' because human interplay in markets are not always perfectly rational. We also donot believe in beta as a measure of risk. Beta is a measure of historical volatility. Risk, inter alia, is a function of buying price. We believe in taking concentrated bets in 10-12 businesses and keeping a low portfolio turnover.
