THE BACKBONE
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