Founder's Portfolio

The Founder’s Portfolio is designed to grow your wealth

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The Founder’s Portfolio has been strategized based on the investment philosophy of great names like Philip Fisher, Warren Buffet, Peter Lynch, and Raamdeo Agrawal.

The mission is simple – To compound your wealth by generating an alpha return, or in other words, a return that is in excess over the popular indices that are used to measure the growth of the market. 

"All intelligent investing is value investing, acquiring more than you are paying for. You must value the business in order to value the stock."

How do we achieve this? The Founder’s Portfolio is built on the bedrock of a long-term, disciplined investment approach. This is a philosophy that is maintained over time in order to keep in view your objectives and ambitions and making your money work hard over the years to fulfil them. Our investment philosophy relies on what is recognised as the eighth wonder of the world – The effect of the Power of Compounding. The impact is maximized through a long-term buy and hold investment strategy that we adhere to and stay away from frequent trading that only dilutes the value of the portfolio.

What is the investment strategy of the Founder’s Portfolio?

Having learnt from the successes of luminaries like Warren Buffet and his long-term partner Charlie Munger, we are driven towards a concentrated portfolio allocation approach led by sufficient sector diversification. However, we keep a close watch on the number of sectors we are invested in as an over-diversification often leads to a progressive dilution in the returns expected from the portfolio on an overall basis. In order to achieve sustained long-term goals, we rely on an in-depth, data-driven research methodology that consists of both quantitative and qualitative research techniques.

“We simply attempt to be fearful when others are greedy and to be greedy only when others are fearful.”

 

There are some tenets that we strictly follow in the identification of potential companies. All our investee companies must be fundamentally strong and financially stable. Their financials should be of high quality with an ample cash balance and a zero or minimal debt proportion. As regards the growth and profitability aspects, sales growth should be 10% year-on-year for at least 5 out of a period of 10 years. The company should maintain a Return on Equity (ROE) growth of 15%-20% year-on-year. Furthermore, we prefer companies wherein the cash is received in advance prior to the provision of goods/services.

Moving onto the qualitative aspect, the business must be founder driven wherein he / she / they are actively involved in the business operations, and have an in-depth experience in every function, and own a majority stake in the company’s stock. Our strength is to identify great companies over the world with a distinct brand image, and a unique competitive advantage to outpower competitors.

The Founder’s Portfolio has consistently beaten the market

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Having learnt from the successes of luminaries like Warren Buffet and his long-term partner Charlie Munger, we are driven towards a concentrated portfolio allocation approach led by sufficient sector diversification. However, we keep a close watch on the number of sectors we are invested in as an over-diversification often leads to a progressive dilution in the returns expected from the portfolio on an overall basis. In order to achieve sustained long-term goals, we rely on an in-depth, data-driven research methodology that consists of both quantitative and qualitative research techniques.

"Einstein said the power of compounding is the eight wonder of the world. One who understands this, earns it and one who does not, pays it. Please exploit the power of compounding for the long term through equity funds."

The mission of the Founder’s Portfolio is to generate an alpha return over the market return through active fund management and dynamic portfolio allocation techniques. We have essentially followed the investment practices as outlined by some of the great names and have added our own perspective in devising the Founder’s Portfolio. 

While we do not specifically target the achievement of a specific growth benchmark, the idea is to maximise returns on the portfolio and achieve a high double-digit growth over an extended period. Towards this we constantly monitor the economic indicators, sectoral diversification, company business indicators like the management team, order book, cash flow, and profits etc., apart from looking at the competitive environment and government regulations and interventions. Unlike many other funds that are ring fenced in their strategy through choices in sectors, company size and history, geographies etc., the Founder’s Portfolio is distinguished by its singular aim in achieving investor growth above all else. If need be, we will be happy to relook the composition of the complete portfolio of investee companies to ensure we stay ahead of the game and consistently overhaul popular indices. Case in point, in FY 2020 we outperformed the S&P 500 Index by approximately 16%, the EAFE Index by 22%, and the Vanguard Total World Index by 20% – All this despite the tumult caused by the ongoing pandemic.

Invest in the Founder's Portfolio: Experience double-digit growth in your wealth.