PHILOSOPHY

MOAT PMS is driven by market intelligence and quality research

We are very careful about our investors’ money as we are about our own and
hence our primary aim is to ensure the safety of your capital.

1

We have learned over a period of time to have a concentrated portfolio of quality companies that we understood well rather than spread too thin across several investments. Diversification for the sake of, do not make sense. We believe in diversification in concentration.

2

While managing your portfolio we never try to time the market and give into fears, pessimism, and crowd mentality – We are patient and disciplined in our approach.

3

However, we churn a part of the capital to take advantage of short to medium term opportunities, which dominate today’s market.

4

We don’t let the noise corrupt our thinking. We adopt a cautious stance and are always alert to any signs of trouble. This allows us to focus on each investment impartially and without emotion.

5

We at MOAT make it a point not to act in haste, whatever be the level of conviction. We wait for the price that we find appropriate, before we click ‘buy’.

6

We buy a stock if the market price is quoting at a significant discount to the intrinsic value. We sell when the market value approaches intrinsic value or we find another security trading at a steeper discount to intrinsic value.

7

The world of equity investments is dynamic. It is imperative to constantly review the investment decisions; because changing environment necessitates change in assessment of future. Hence we question our ideas relentlessly and are open-minded to various possibilities.

8

Successful equity investing also requires a sell discipline to prevent decisions from being driven by subjective criteria or emotions, rather than facts. If you do not have a discipline on the sell side, you could actually destroy many years of return, one had made. We at MOAT have incorporated a clear sell strategy in our investment process.

9

If we are unable to find any investment ideas, we prefer to sit idle than risk a permanent loss of capital.

10

We always would keep equity investing, simple.

We believe that the greatest challenge today, is in avoiding rather than identifying an investment candidate.

The basic idea is to stay focused in identifying quality businesses to invest or partner with and stay away from all the buzz and noises that surrounds a business or economy.

Choosing a stock is as good as choosing a quality and productive business that one can self-manage. Hence there are certain aspects and criteria that we keep in mind while selecting investment candidates for your portfolio.

1

We usually prefer businesses that have strong entry barriers in a sector that could provide opportunity for volume growth.

2

We like businesses that are in a competitive situation with pricing power that provides them the ability to pass on input price increases to its end customers.

3

We also like hard asset players who had put in the assets up and those cannot be replaced and replicated at the current price, as the pricing power to these companies in the next inflation cycle is going to be so high.

4

We prefer businesses that have pristine balance sheet and rational allocation of equity and debt, run by upright and honest management.

5

We are great fans of businesses that neither dilute their equity nor undertake debts very often.

6

We are obsessed with companies that can earn returns well above its cost of capital and that too for a long period of time.

7

We like business with predictable earnings and reasonable dividend payout ratio.

8

We have the habit of avoiding businesses that appear more often in limelight and make more frequent news headlines.

Portfolio management is more of a personalized and luxurious service by nature

The very special ones are welcome to earn their stakes in India’s choicest businesses.
Experience it through our premium boutique Portfolio Management Services.