Kalpesh’s Portfolio

There are many ways to make money in investing business but only few ways to make money consistently,

• Invest in businesses with pricing power, run by rational management & have long growth runway
  There are very few such businesses available and they are overvalued most of the time, so one can invest in them either when they are fairly priced or have a very long time investment horizon(10years+)

• Invest where downside is protected, upside will take care on its own
  More than 90% of businesses are more or less cyclical, find businesses run by rational management and have large margin of safety in the price and balance sheet is such that it wont go bankrupt in hard time.
  Buy when the business is bleeding and sell whenever price come near to intrinsic value. Ideally fair value acts as a gravitational force, normally prices do come to match intrinsic value in 18-36 months

Calculation of correct range of intrinsic value is a key to success here. Be conservative & realistic.

Be it Warren Buffet, Howard Marks, Joel Greenblatt or Mohnish Pabrai all have made consistent returns by this method, so this is proven & sustainable way to riches.

“To have better future, take rational decisions in present “