PA Wealth Advisors’ team is engaged in conducting research and analysis to provide the best possible equity investment strategies. Reformulating the portfolios as per current market changes in order to extract the best results as expected. Also expediting the process for investing in direct stocks including the formalities for new as well as experienced investors.
- Seeking superior long term capital appreciation.
Our Investment Approach:
- Value investing and Margin of Safety
- Disciplined and patience investing
- Management and business quality
- Concentrated portfolio
- Long term orientation
- Skin in the game
- Adding and allocating idea to the portfolio based on the risk-return ratios
- On-going due diligence and regular tracking of the position from various other angles
- Reducing/selling position when risk-return ratio worsens
Developing a basket
The team provides recommendations by formulating investment strategies that include the following categories of equity instruments:
Value stocks trade at a bargain price that is lower than the stock prices of the companies in the same industry because of the attitude of the market. These tend to be undervalued than how the company's performance otherwise indicate - High dividend yield, earnings and sales. Such companies have a higher growth but at a lower pace as compared to the other companies in same industry and require a careful study on a constant basis. A value stock is considered riskier than a growth stock because of the sceptical attitude the market has towards the value stock. For a value stock to turn profitable, the market must alter its perception of the company, which is considered riskier than a growth entity developing. For this reason, a value stock is typically more likely to have a higher long-term return than a growth stock because of the underlying risk
Compounding is the ability of an asset to generate earnings from previous earnings by reinvesting and generating income on them. The wonder of compounding (sometimes called "compound interest") transforms your working money into a highly powerful income-generating tool. It requires two things: the reinvestment of earnings and time. The more time you give your investments, the more you are able to accelerate the income potential of your original investment.
The power of compounding is great and can lead to strong value addition to wealth and make it ever growing.
These are stocks of companies which have gone through a phase of weak financial performance and share prices have been beaten down. The idea is to find companies that are likely to identify issues that lead to a weak performance and change their business strategy to become profitable again by management change, managing cash flows, new business strategies, improving sales, new products, cost cutting initiatives and other measures. The effort is to let the investors bet on the stocks that have the highest potential to appreciate in future.
Special Situation Stocks
Special situation investing is a good proxy for holding cash or debt. It can generate materially higher returns than just holding debt or cash equivalents.
Types of Special Situations :
- Right Issues
- Open Offers
- Buyback Tenders
- Offer for Sale
- Large Dividend Payouts
Diversified asset allocation
The team consciously focuses on diversified portfolio strategies and monitors those over long term for the best possible results. Deciding which stocks to invest in can be difficult, especially if you have a low tolerance for risk. That’s why it’s important to define one’s financial goals and how much risk can be tolerated.
Some key points for IDENTIFYING NEW PATTERNS AND STOCK IDEAS :
- Identifying themes that can have long runway and taking advantage of them in stock selection e.g. long term structural changes in the economy.
- Understanding Operating leverages and financial leverages and how they can aid companies’ performances.
- Looking at peer group of companies and comparing them to the companies that we are interested in.
- Looking at other companies where a Director Promoter that we admire is on the Board of Directors.
All plans are set out after considering the clients' expectations, investment goals, time frame and risk profiling.
For more details write us at firstname.lastname@example.org or call +91-9988275566