Brahmal Vasudevan has enjoyed consistent success with his stock picks for Creador. Creador’s holdings in Cholamandalam Finance, Repco Home Finance and Somany Ceramics have yielded handsome returns. Creador recently sold a part of its holdings in Repco Home Finance, though Anand Narayan, Sr. MD of Creador, hastened to clarify that the sale was only to return investors some money and not from a lack of confidence in Repco.
Creador has enjoyed the same level of success in Malaysia, Brahmal’s home town. Thestar.com has detailed Creador’s investments in Malaysia and points out that investments like those in MyEG Services Bhd and SMRT Holdings Bhd have yielded gains of 300% and 140% respectively.
Brahmal’s interview on the same site yields useful information as to his investment strategy:
(i) Pick companies with a strong track record, deep and sustainable ‘moat’ and fantastic management teams. Make sure that the capital is protected so that even in the worst-case scenario you can get your capital back;
(ii) Invest in sectors that offer high growth and in companies that lead in those segments. Assess Companies on management strength and track record as well as sustainability of earnings, among others;
(iii) Invest in companies that seek to expand regionally. Check their strategies and execution plans and make sure they can be turned into reality;
(iv) Find leaders in their respective segments and work alongside the entrepreneurs to build their companies to the next level. Partner with passionate entrepreneurs to build world-class companies;
(v) Avoid cyclical sectors like commodities.
Brahmal Vasudevan’s investment strategy is simple and easy to understand. With a bit of effort, we should be able to replicate it and hopefully enjoy the same degree of success that he has.