Name: Best Ideas Basket
Brand: smallcase
SKU: YSEMO_0001
Price: 274151 INR

Yellowstone Equity provides India focused equity research services to global institutions and individual investors. It leverages the power of alpha and compounding to help create long-term wealth for its clients.

Nifty 500 Index

Best Ideas Basket

Ankit Agrawal

High conviction ideas across market-cap/sectors to help create wealth through alpha and compounding

We are unconstrained and nimble in our approach and will traverse across market caps and sectors to find the best investment opportunities. Accordingly, all publicly traded companies on the National Stock Exchange of India are included in the universe.

As students of the likes of Warren Buffett, Charlie Munger, and Seth Klarman,&nbsp;we think of investing as taking part ownership in businesses&nbsp;with a long-term horizon and appropriate margin of safety.&nbsp;As such, our first principles guiding our investment approach are: <ul><li>Buy the Business, Not the Stock</li><li>Margin of Safety (Value &gt; Price) is Key</li></ul> Accordingly, our research process involves spending considerable amount of time in doing deep-dive fundamental work to assess a given business and its valuation.

Our historical track record so far suggests that we have been able to outperform markets considerably, especially during challenging periods. However, our returns may see intermittent volatility as our investment horizon tends to be at least 3-5 years.

Our investment recommendations are guided by three key pillars: 1) Quality2) Business Potential/Earnings Power3) Valuation For more details, please refer to the strategy section of our website - <a href="https://yellowstoneequity.com/index.php?strategy" rel="noopener noreferrer" target="_blank">https://yellowstoneequity.com/index.php?strategy</a>

We provide Conviction Level (%) per idea to indicate our confidence level in a given idea. The Conviction Level also indicates relative attractiveness of a given idea vis-a-vis our other ideas. Higher the Conviction Level percentage, higher our confidence level. Structuring our Best Ideas Basket by Conviction Level also enables measurability and trackability of the conviction-weighted performance of our recommendations in a consistent and quantifiable manner across time periods. Note that these Conviction Level percentages should not be construed as portfolio weightages or asset-allocation/capital-allocation advice. Our clients/end-users are free to invest in none or one or many or all of our recommended ideas, in any proportion/weight/allocation as per their choice and as they deem appropriate. Our Conviction Level per idea is a function of a) Age of a Business in its Lifecycle (based on evidence of business execution and runway for growth) and b) Risk/Reward Asymmetry.

This smallcase will be rebalanced on an as-needed basis

We would love to remain fully invested in equities all the time given that equities generate best returns in the long-term. However, equities don't go up in linear fashion but rather witness significant volatility in the interim. Our years of cross-cycle experience has taught us that it is best to embrace this volatility than to fear it. Accordingly, our bottom-up and disciplined valuation approach can dictate us to have substantial cash allocation, at times, when there is dearth of attractive investment opportunities. Contrary to popular belief, cash is an attractive asset to own if one accounts for its option value and acknowledges behavioral pitfalls of staying fully invested.

Best Ideas Basket

Best Ideas Basket

Overview

Stocks & Weights