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Candor Investing - Model Portfolio

We are bottom-up fundamental investors adhering to the value investing philosophy as practiced by Philip Fisher, Warren Buffet, Charlie Munger, Prem Watsa and other stalwarts.

We use the fundamental research approach to carefully identify businesses which are fundamentally strong, have a long operating history and have bright prospects to grow in the future. 

We live by a simple principle when it comes to stock market investing

“When profits of the company go up, stock prices go up and vice versa”

Our Investment Philosophy

“Buy quality businesses at reasonable valuations and hold till the company executes.”

What is a quality business?

• Business has a competitive advantage – a moat
• Consistent high Return on Equity & Return on Capital Employed
• Low / No Debt
• Honest Management, sense of stewardship

Portfolio Composition

We do not categorize our investments into small/mid/large cap stocks. but buy businesses that have a demonstrated superior execution capability in the past, hold promise for the future and are available at cheap enough valuations.

Our model portfolio typically consists of 8-10 high quality businesses.

The average market-capitalization of our model portfolio is around Rs 6,000 Cr.

Sarvesh Shenai

Principal Officer

Candour Asset Management LLP (Research Analyst)

• You are a long-term investor with a time horizon of  5+ years
• You want to get rich, but slowly - with patience and perseverance
• You want to compound your wealth through owning quality Indian business

You can expect to make a return of 2 times the nominal GDP (ie GDP growth + inflation) on a compounded basis over 3 to 5 yrs

You may expect to double your money in 5 years (15% CAGR)

When investing in equities, we want to keep our expectations conservative so that we do not take avoidable risks which could result in severe losses.

Our motto is good returns with low/moderate risk.

Do checkout our audited performance at https://candorinvesting.com/audited-performance.

You can buy smallcases on any of the partner brokers. Select a smallcase, select your broker and invest in less than 2 clicks.

Our partner brokers are:

Zerodha, AxisDirect, Edelweiss, HDFC Securities, Kotak Securities, IIFL Securities, 5 Paisa, Aliceblue, Angel Broking, Trustline, Upstox, Motilal Oswal, Groww, ICICI Direct, Fundzbazar and Dhan

In situations like those happened in Mar-20 or the global financial crisis of 2008, it makes immense sense to put lumpsum money.

SIP is a disciplined way to remove the human error in trying to predict the future.

Additionally, for salaried people, they earn monthly and save monthly, so it makes a lot of sense to invest monthly.

And hence, we investors to do a SIP in the Candor Investing smallcase

The funds from your broker account are utilised to invest in smallcases and the respective stocks are credited to your broker linked demat account.

Once you have invested, the index value of the smallcase is set to 100 on the buy day for easy tracking. You can monitor the performance of the smallcase from the Investments page on the broker’s smallcase platform.

Also, each smallcase is reviewed periodically and rebalanced to ensure your objective is on track.

The index value of a smallcase indicates the absolute price returns of that particular smallcase from the date of its inception. The index value is set to 100 on the inception date of the smallcase. The current index value shows by how much it has gone up since then.

When buying a smallcase, an index value of 100 is assigned to it. Overtime, if the index value is 108.54, you can easily deduce that your smallcase has generated a total return of 8.54%.

The Details view shows you a more detailed investment overview and P&L breakdown. You can also track individual stock details from the Investments page.

There are no lock-in periods, so you may sell your smallcases anytime. As a concept however, smallcases work best when used for long-term investing.

Exclusive smallcases can be subscribed directly from the smallcase profile by following the steps below : 

• Fill the subscription form with your name, email and phone number
• Choose your broker amongst the list of our partner brokers and login with your broker credentials
• Select the subscription plan and make the payment
• After successful payment, invest in the subscribed smallcase inside your broker platform by clicking on “Invest Now” 

Rebalancing is the process of ensuring the weights of the stocks in the smallcase continue to be true to the underlying smallcase strategy. The rebalance frequency is decided by the creator of the smallcase. You can update your smallcase in 2 clicks to ensure your smallcase is on track with the strategy.

You can request access for an exclusive smallcase by filling up the request invite form on the smallcase profile.

When we invite you to invest in a smallcase, you can buy the smallcase in 2clicks. Invite for multiple smallcases can also be requested.

When we invite you to invest in a smallcase, you can buy the smallcase in 2 clicks. Invite for multiple smallcases can also be requested.

• You are a long-term investor with a time horizon of  5+ years
• You want to get rich, but slowly - with patience and perseverance
• You want to compound your wealth through owning quality Indian businesses

You can expect to make a return of 2 times the nominal GDP (ie GDP growth + inflation) on a compounded basis over 3 to 5 yrs

You may expect to double your money in 5 years (15% CAGR)

When investing in equities, we want to keep our expectations conservative so that we do not take avoidable risks which could result in severe losses.

Our motto is good returns with low/moderate risk.

Do checkout our audited performance at https://candorinvesting.com/audited-performance.

In situations like those happened in Mar-20 or the global financial crisis of 2008, it makes immense sense to put lumpsum money.

From the individual smallcase page, you can find the Exit option at the right under More Actions. You can then choose a whole exit (sell all the constituents of a smallcase and exit completely) or a partial exit (book some profits while maintaining the minimum amount).

Note: Partial Exit can only be done if you’ve invested more than the minimum amount into the smallcase.

Orders are unfilled under the following circumstances:

• No demat account linked with your trading account (A demat account is required to buy smallcases)
• Insufficient funds while placing the orders (even though a funds check is conducted when you place any order - prices might have changed resulting in a/some order/s not getting filled)
• If a stock is already sold on the broker platform, orders might be unfilled (If you have sold an stock directly via the broker platform, this does not get updated in your smallcases and hence results in unfilled orders)

Note: Partial Exit can only be done if you’ve invested more than the minimum amount into the smallcase.

Repairing the batch helps you place fresh orders for those constituents that were not filled so your smallcase can be complete. For stocks that are already sold on the broker platform, contact the support team to reconcile your holdings.

Archiving a batch excludes those stocks that you have unfilled orders for and completes your smallcase without placing fresh orders.

In this case, the smallcase will not be the same as the original version you meant to buy/invest more/rebalance/exit & will differ in composition & returns.

SIP is a disciplined way to remove the human error in trying to predict the future.

Additionally, for salaried people, they earn monthly and save monthly, so it makes a lot of sense to invest monthly.

And hence, we investors to do a SIP in the Candor Investing smallcase.

Investing is a game of probability and patience. We must expect returns to be lumpy, sometimes down, other times up. If some of our portfolio stocks have fallen from our purchase price, we will re-evaluate the risks to the business. In such a scenario, we have to be sure of our research. If the company is still fundamentally strong and the business is growing, adding more customers, launching new profitable products, entering new geographies (Eg Dmart finally entering Delhi market) we will continue to hold the stock.

Imagine that you invest Rs 100 in a portfolio of 10 stocks – Rs 10 in each stock. Suppose after 5 years, 8 companies go bankrupt, their stock price goes to zero and you lose 100% of your investment in these companies. Stock price 2 of the 10 companies increases by 10 times after 5 years. Your original portfolio increases to Rs 200. Your annualized returns is 15% CAGR – not a bad performance. This means with a success rate of only 2/10, we have still made a annualized returns of 15% over a five year period. What does this example tell us? It is important to make money on the overall portfolio, not on every stock that we invest in Equity investing is a very forgiving business, even after losing money in several stocks, we will make overall money if we identify a few good companies.

One of the payment method available to subscribe to a fee based smallcase is eNACH where an e-Mandate is created.

If you want to cancel your e-Mandate(s) linked with any of your fee based smallcase subscription, please drop an email to publisher.help@smallcase.com with the following details:

• Email used for subscription
• Subscribed smallcase Name

We will share the mandate(s) details in response to your request including the below:

• Mandate maximum limit
• Mandate Validity
• UMRN no. (Unique Mandate Registration Number)

To proceed with the cancellation of the mandate, we would require your confirmation by email after verifying the mandate and payment details. 

After receiving your confirmation, we will process the mandate cancellation and update you with the status within 72 hours.