Model Portfolio Of The Best 12 Stocks By Edelweiss

Edelweiss Top Picks has delivered a return of 102% since inception as against Nifty return of 44%, translating into an out-performance of 58%. On an annualized basis, Top Picks have delivered a return of 47% per annum as against Nifty return of 30%.

Core Investment Philosophy

Only those stocks have been chosen which fulfill the following criteria

Opportunity size

– How big the sector can grow (3x, 4x, 5x)

Corporate Governance

– Management back ground
– Accounting policies
– Corporate policies
– Business with Related Parties

Moat around the business

– Differentiated business Model
– Sustainable competitive advantage
– High barriers to entry

Strong Management Credentials

– Professional management
– 2nd level of management
– Track record of past decisions comments v/s deliverable

Strong earning visibility

– Predictability for next 5-6 years
– Ease in understanding business
– Impact of technology, obsolesce of technology

Financials

– Revenue growth
– ROE/ROCE
– Cash flow
– Du-pont Analysis
– Financial comparison with the competition

Leadership Position

– Market Share
– Bargaining power
– Consistent leadership

What is not chosen

– Subsidy driven
– Non self sustaining