We do not analyse stocks, we analyse businesses, mostly small & mid sized emerging companies which are dominant in an expanding niche, are run by a competent & ethical management teams and are available at fair valuations. A few good stocks are enough for creating lifetime of wealth & these are the kind of opportunities we strive to unearth. We do not get interested in businesses until they have potential to give decent return over 3-5 years. We are obsessed about capital protection and hence first assess the downside risks before potential upside which rules out most of the names from commodity space, those with high debt, from highly regulated sectors, government owned entities & those run by managements with questionable integrity or bad capital allocation history.
We are not arm-chair investors who just read annual reports and invest, rather we make sure we interact with the management and visit company's plants to understand business and its growth levers from ground up. We also interact with other stakeholders mainly channel partners (dealers & distributors) and employees to get a first hand information on the management quality. Since our process involves a lot of qualitative as well as quantitative filters, we leverage simple yet effective tools like checklists to make sure we do not miss any important factor.
A detailed explanation of the process can be Read Here
It is not going to be all multi-baggers only, which are infact far and few, and only clear in hindsight. We have had our fair share of lemons too - stocks which we eventually sold at a loss or like Wonderla Holidays where thesis is yet to play out despite holding for many years. However, every cycle we will have few winning outliers which will not only make up for positions where the thesis does not play out but considerably lift the overall performance of the portfolio. This cycle has the likes of APL Apollo (5x in 2.5 years) and Suven Pharma (4x in 1.5 years), the previous cycle had Tasty Bite Eatables (9x in 2.5 years). That’s the nature of the game – lose some, win big. It is important to be at peace with few loss-making or non-performing stocks realizing the outliers will more than makeup for them. No matter how much we try, unfortunately, there is no way we can fully avoid losing positions as it’s all too dynamic. Even the best of investors and fund managers globally have not got it right beyond 6 out of 10 positions as per Peter Lynch.
Ultimately what matters is how we do at the portfolio/basket level despite losing on some positions, as the winning positions more than make up for the losing positions - maximum one could lose in a stock is the invested capital, however there is no upper limit to returns in positions where we get it right. The 80:20 rule applies in investing too - 80% of the gains come from 20% of the positions. To win a cricket match, not every player has to hit a century, and ultimately what matters is winning the match (portfolio returns) and not how every player performed (individual stock performance) and our focus is on winning the game (portfolio returns). It is extremely important for the subscribers co-investing with us to be aligned in this thought-process.
| Company Name | Buy Price | Exit/Current* Price | Loss | Holding Period |
|---|---|---|---|---|
| Goodricke Group | 406 | 132 | 68% | 2 Years |
| Wonderla Holidays* | 274 | 180 | 34% | Invested |
| Exide Industries | 230 | 181 | 21.4% | 2 Years |
| Agro-Tech Foods | 600 | 525 | 12.5% | 2.5 Years |
| GE Power India | 650 | 595 | 8.5% | 2.5 Years |
We are not in the tip-giving business, luring gullible individual investors and playing with their greed and get-rich-quick dreams. We ourselves are full-time investors, and are willing to partner only like-minded investors in building a solid long-term portfolio to create wealth.
We are SEBI Registered Research Analyst (Registration No. INH100007912); we follow all due-diligence and compliance as per SEBI regulations and run by team of qualified MBAs and CFAs (US) with rich experience in investment analysis and portfolio management.
We do not have multiple services (portfolios) or multiple structures (PMS / AIF / MF / Broking / Distribution) which often leads to serious conflict of interests. We are purely an Independent Equity Research firm with just one service where we co-invest. It is as simple and transparent as it can get, period.
We aren't another run-of-the-mill advisory, rather a team of full-time investors co-invested in the same stocks as recommended to our subscribers. We ensure our interests are aligned and we eat our own cooking.
We are not anyway into stock broking business hence do not embrace 'activity' just for the sake of it. We act when its important, otherwise we let money work and reap benefits of compounding.
There will be volatility as we go along however the chances of permanent loss of capital would be low, thanks to our focus on business quality as well as management quality. We avoid following current fads in blindly chasing returns. Read about our Risk Management Framework
Well researched, insightful and yet easy-to-understand research reports; no point in borrowing somebody's conviction, we help you build your own. Read the Initiating Coverage Report and AGM Visit & Annual Report Dissection Note of Tasty Bite Eatables.
Clear strategies and rating on each stock - buy, hold and exit.
Quarterly updates, AGM and Annual Report dissection Notes, Management Meet Notes and other relevant news reach your dashboard for which you get notified via email and SMS.
We focus primarily on niche businesses with long runway for growth and not in 20-25% upside/trading ideas. Goal is to create wealth and not get lost in trading opportunities.
New stock ideas are released only when its a compelling opportunity; no counter-productive commitments on fixed number of new stock ideas or frequency like monthly or fortnightly which is often against investor interest.
20-25 high quality stock ideas along with Sizing Guide to help you construct an ideal long-term portfolio.
We have deliberately kept the fee nominal so as to make economic sense to individual investors with smaller capital base. More importantly, there is no profit sharing. Minimum suggested capital is Rs 7 lacs.
Stalwart Advisors' endeavour is to provide unbiased, institutional quality fundamental research to investors at an affordable fee & help them participate in equities sensibly while outperforming market across cycles.
We are proud to showcase each skill that Stalwart Advisors possess.
No Trading/Short-term Ideas
No Technical Analysis
No Derivatives like Futures & Options
No Shortcuts Whatsoever
We aren't into tip-giving business where we just SMS you the names of the stocks. Rather we understand the value of one's hard-earned savings and the courage it takes to deploy those in a volatile and complex asset class like equities. We, therefore, strive to engage you in the investing process via insightful yet easy-to-understand research reports so that you develop your own conviction and not get perturbed with daily volatility. Further, our rigorous portfolio tracking means you can focus on your daily work without worrying about your investments. We keep a close eye on all developments and keep you updated via quarterly result updates, management meeting/interaction notes, plant visit notes, AGM takeaway notes, industry developments among others, all of which are notified real-time via email and SMS alerts.
Following are sample research reports of one of our older investments
Tasty Bite Eatables - Read the Initiating Coverage Report and AGM Visit & Annual Report Dissection Note.
In addition to regular company-specific updates, we have an exclusive video channel called 'SA Broadcast' under which every quarter our research head, Jatin Khemani, update the subscribers about all the stocks under coverage, markets in general and the way forward. See snippets from Q3FY19 episode of SA Broadcast
Here's what our subscribers have to say about our research:
We are a close knit team that works meticulously, led by
Jatin Khemani, Managing Partner & CIO
Jatin has over ten years of experience in investment analysis and portfolio management. Prior to founding Stalwart Advisors in 2014, he was working with a Delhi-based family office as the head of research. He is a CFA (US) Charter holder, earned MBA in Finance from Christ University, Bangalore and graduation in commerce from Delhi University. Thanks to his admiration for Peter Lynch & Phillip Fisher, Jatin has over the years become proficient in Scuttlebutt; a primary research method to find out truth about a company or an industry.
On weekends he teaches finance to MBA students and is an active volunteer with The Art of Living since 2006, where he leads state level fund-raising campaigns.
Stalwart Advisors also has a board of advisors which includes veterans with decades of investing experience; each stock idea is meticulously discussed and brainstormed within this board before being added to buy list.
"Being a Finance professional myself and working closely with large businesses, I can appreciate and am impressed by the depth of research available in Stalwart reports, which is far beyond that available in public domain. These reports are like an education in Informed Investing and a learning tool to the techniques of various Guru's. Will certainly recommend to any serious Investor."
"The team at SA follows an extremely focused research methodology. The emphasis is always on thorough scuttlebutt and long term appraisal of a business as opposed to short term factors. This is precisely the kind of research retail investors lack access to. I have particularly found the annual report analyses extremely useful. My interactions with Jatin have been a great source of knowledge on economics of various industries. I would strongly recommend their services for retail investors with a long term investment horizon."
"Jatin and his team are doing great service to the investor community, you feel like there is nothing else left to find about the company after reading his reports. Away from market noise, the reports are very precise, deeply researched and yet easy to understand. Each report reflects Jatin’s passion and his smart eye in studying the company, I am sure lot of hard work must have gone into it. Similar to his picks, his subscription is synonymous with enhanced Dhando Investor deal: Heads I win, Tails I don’t lose at all. His reports are a must read for a long term equity investor who wants to invest confidently."
"Jatin has been recommending me stocks for over 3 years. He studies companies as if he is going to buy the entire business and I think thats what gives him conviction in his ideas and leads to right position sizing. He backs few stocks but when he does, he has valid fundamental reasons to do so. Getting on-the-ground info is his forte which is obvious as he is a Peter Lynch fan. Whether you are a newbie or an experienced investor, would recommend his advisory services to every investor who is serious in creating long-term wealth."
"I have been a subscriber since 2014 and let me admit this, the kind of research you would see in the reports is so simplified that even a beginner in stock markets would understand and feel confident about the idea and his investment. I’m pretty confident about their thought process and would retire early & rich :)
I would highly recommend the service offered by Stalwart Advisors."
"I have known Jatin for a while now. I find his approach to investing to be quite sensible with a structured balance between capital appreciation and loss protection. He chooses quality companies with a good scalability potential and remains loyal to them to let the returns play out. In volatile markets, his picks stay calm on down trends and this steadies the investment ship leaving room for appreciation through quality of earnings over time. I wish him continued success."
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