The investment objective of the Strategy is to achieve long term capital appreciation by primarily investing in equity & equity related across market capitalization.
Why ‘Buy Right : Sit Tight’ is significant?
• Real wealth is created by riding out bulk of the growth curve of quality companies and not by trading in and out in response to buy, sell and hold recommendations.
• This philosophy enables investor and manager alike to keep focus on the businesses they are holding rather than get distracted by movements in share prices
• An approach of buying high quality stocks and holding them for a long term wealth creation motive, results in drastic reduction of costs for the end investor.
• While BUY RIGHT is largely the role of the portfolio manager, SIT TIGHT calls for involvement from the portfolio manager as well as investor. This brings in greater accountability from the manager and at the same time calls for better involvement and understanding from investor resulting in better education for the latter.
• Long term multiplication of wealth is obtained only by holding on to the winners and deserting the losers.
Wealth Creators – Buy and Hold strategy
• BUY & HOLD strategy, leading low churn, lower costs and enhanced returns
• A business is prudently picked for investment after a thorough study of its underlying hidden long-term potential.
• “We don’t get paid for activity, just for being right. As to how long we’ll wait, we’ll wait indefinitely.” -Warren Buffett