Investment Philosophy Inspired by the laws of the natural ecosystem of the Himalayas, the following reflect our investment philosophy and beliefs:
A dominant business is built with the same analogy of that of a river formation.
Using the same ideology we at Himavan scout for investment opportunities by identifying businesses which serve millions of people by solving complex problems around the world only due to their dominant nature. These businesses are profitable due multiple revenue streams and having a competitive advantage over their peers.
Just how Himalayan glacier systems readjust themselves to temperature changes, so does the ecosystem of financial markets to relevant/non relevant information and price movements. These readjustments create a cycle of inefficiencies between them. Our clients hire us because of our superior knowledge advantage and rational application of hard work and effort leading to potentially superior investment results.
Financial markets also exhibit a similar pattern of water cycle or hydrologic cycle. These cycles are defined as business cycles, economic cycles, inflation cycles and interest rate cycles. Gravity a natural phenomenon plays an important role in both the cycles. Financial markets reflect the same analogy, it’s the psychological gravity that keeps pulling back the markets from the top of a pinnacle to the bottom of a pit.
As nature destroys those who overutilize natural resources, the same way financial markets react and punishes irrational exuberant risks takers. We place our highest priority on preventing losses and not taking extravagant risks. Our main focus is safeguarding capital, earning sufficient returns with the sole objective of justifying the risk taken. We look at risks not only with quantitative factors, but qualitative factors too. We certainly don’t believe in the idea of risks as a measurable variable or other quacks described in modern theory of finance.
Mountaineers emphasize on margin of safety while going out on their expedition. It is so critical that it can make a difference between life and death. Similarly, while investing in financial markets margin of safety provides a cushion against errors in calculation of intrinsic value of businesses. With our research methodology we are able to provide consistent protection of their capital with superior returns in bad times.
He who understands it pays it, he who does not pays it”.
Rivers originating from the Himalaya’s are perennial in nature and it’s water contains all the vital elements necessary for survival of mankind. We at Himavan also believe in perennial returns over a lifespan of our investments compounding at a rate which is greater than the index and we work hard to get those elements and achieve them.