Strategy to build wealth
Konda ventures will be the parent company for all our subsidaries. We will be having Konda Equities Ltd as the subsidary which will be located and operated in USA.
Why to Invest in Our Fund?
We identified few major tasks in capital allocation.
Buy Low and Sell High We will follow the bottom up approach followed by value investing gurus like Benjamin Graham and Warren Buffet. So we buy when there is fear in the market at low prices and sell when people are really greedy at high process. This approach is well proven by many people. It is simple to say and difficult to implement.
Good company Vs Good Stock All Good companies may not be good stocks to buy because of the price tag they carry. So we need to identify the Good stock and not a good company. Historic valuations based on stock data, tells which is good stock. Next step will be to identify weather it is a good company based on its balance sheet and future prospects.
Invest at right time This is very risky task and no one knows when the market up and down. The only thing they can do is predict the future and the history tells there is no one can predict it. If so, they would have been richest people in the world and they don’t have to work for someone. So we rather follow the price and margin of safety than timing of market.
Allocating Capital Allocating capital to the stock is very critical part of security analysis. So we should not allocate two high for a low performer in portfolio or too low for high performer. To nullify this risk, we will allocate only 1% assets per week and remaining will be in fixed income securities. For investing total 100% capital takes 100 weeks or approximately 2 years and by the time some of the securities may come for maturity or realize our price targets and we can reallocate that money for new securities. The maximum allocation to a security will be 10% and that is based on its potential. This minimizes the risk of loosing money and gives opportunity to buy more when price of security goes down after initial buy.
Other reasons to choose us- The only fee we take is performance fee and we do not have any maintenance charges like Hedge Funds or Financial Advisors. The historical nominal return is 6%. So we charge 25% on profits above nominal 6%r returns. If we are not able return above 6%, there will be no charge till we surpass compounded 6% return for next coming years. So we will get paid only if we can make you money.
- We will be available most of the time and you will not need any appointments for your major investment decisions and can be cancelled at any time with 6 months of notice. Our Investment philosophy is close to buffet and graham value principals and we follow close to the early buffet partnership designed to protect investments.
Early Buffett Partnership- Another assurance we are proposing for this partnership is taking 10% of losses if any. That is to show confidence in our investing discipline.