Ravi Dharamshi

• Investment philosophy: Finding where to fish in the pond

  • If you want to pick the right company, you need to pick the right sector. If you want to pick the right sector, you need to pick the right larger mega-trend. Within that, you need to identify the inflection point at which you should be betting on it.

  • His investment horizon is 5 years. So first identify the mega-trends. Then identify the leaders, challengers, or disruptors in that trend who can change scale during that time period.

• "If you can identify a company whose topline becomes its bottomline in a 5-7 year time period you'll make fantastic money"

• Preconditions to pick a certain mega-trend

  • Technological certainty, to know that the specific technology will succeed

  • Unit economics that helps businesses create value addition

  • Scalable business model

  • Regulatory tailwind to the sector

• There are only 3 times when you should be selling the stock

  • Market has gone crazy

  • Company/promotor has gone crazy (decisions that don't make sense, debt etc.)

  • Far superior opportunity to invest elsewhere. Better use for your capital.

• If your initial targets have been hit within a stock earlier than expected, no need to continue holding. That's what he did with Kaynes Technology. He asked himself if the profits would double 5 years from now, and gave it a very conservative multiple to see if he would make reasonable returns. If the answer is no, then start looking for better opportunities.

• Common markers to capture the growth phase of a sector

  • Technology curve - Lithium ion batteries has hit that inflection point a few years ago and has been adopted very quickly. But then came around sodium ion batteries. The problem with lithium is that it's short in supply, whereas sodium is readily available. However, sodium is not that dense hence we haven't had the technology to apply it yet.

  • Cost curve - Solar is a 70 year old technology. But it hit the cost inflection point a few years ago when China mass adopted it. When the prices crashed, that's where it was adopted around the world as well.

  • Government support - incentivize the user industry to use the product

  • Flow of money

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