Investment Philosophy

• ‘Good’ companies bought at ‘average’ company valuations, ‘average’ companies bought at ‘bad’ company valuations, ‘bad’ companies bought at ‘bankrupt’ company valuations create wealth.

• Error of omissions deadlier than error of commissions.

• They are not a concentrated manager. PMS is synonymous with concentration. Whereas they love the diversification. They hold almost 40 stocks in the portfolio. (Endeavour is to avoid the error of omissions mentioned in the above point)

• Balance sheet investing supersedes P&L investing when valuations are in favour.

• They don’t have ‘minimum’ ROE/ROCE, debt to equity filters. The AMC strongly believe that a company that can increase its ROCE from 8% to 12% can give far superior returns than a company whose ROCE drops from 50% to 45%

• Alpha creation need not necessarily be through selecting winners. It can be created by avoiding losers as well.

• No virtue signalling with respect to management quality, governance etc. Every saint has a past, every sinner has a future. Everything has a price.

• No tactical cash calls based on global or local macros.

• No strategy works forever. Important to be nimble-footed.