Magadh Capital functions on the three broad pillars of –
a) Integrity and transparency – in the entire gamut of the portfolio management practices as well as in operations, and in the way it deals with all its stakeholders. Magadh Capital places a lot of emphasis on keeping the sponsors’/investment managers’ interests aligned with those of its investors. Indeed, corporate governance acts as the first and foremost filter in our investment process.
“Look for three things in a person – intelligence, energy and integrity. If they don’t have the last one do not even bother with the first two”– Warren Buffet
b) Research and knowledge – are the basic guiding principles at Magadh Capital for identifying stock ideas, portfolio construction and risk management. Learning is a continuous, ongoing process for us. We look at knowledge with a multi-disciplinary approach. Intensive reading, meeting people, deep thinking, having a curious mind, and attention to detail are some of the habits/practices/traits that we value in this regard.
If I had an hour to solve a problem and my life depended on the solution, I would spend the first 55 minutes determining the proper question to ask, for once I know the proper question, I could solve the problem in less than five minutes. – Albert Einstein
c) Simplicity – is what Magadh Capital practices, and adheres to during stock selection, and portfolio management – or for that matter, in everything that it does. For example, if a company’s business model is too complicated and vague then it may not be considered for inclusion in Magadh Capital’s portfolio.
If you can't explain it to a 6-year-old, you don't understand it yourself - Albert Einstein