Consistency is Key to Long-Term Wealth Building: Capitalizing on India's Growth Decade

Outperforming the benchmark since inception

As an investor, one of the key factors that can make or break your financial success is consistency. In today's world of fast-paced financial markets and ever-changing economic conditions, it's more important than ever to have a solid, well-thought-out investment strategy that you can rely on over the long-term. This is especially true when it comes to building wealth and reaching your financial goals. In this blog post, I'll be sharing my approach to investing and how I believe consistency is the key to long-term wealth building.

What is the SECTOR ADVANTAGE approach

This means that we focus on buying the best companies across a handful of industries that have the potential to outperform the benchmark and capitalize on "India's Growth Decade". In other words, we aim to invest in those companies that are poised to benefit from the growth and development taking place in India over the next 10 years.

One of the key benefits of this approach is diversification. By investing in a number of different companies across multiple industries, we are able to spread out your risk and reduce the potential impact of any one company underperforming. Currently, over 50% of our portfolio is 6% away from its life highs, which is a testament to the strength and stability of my investments.

8 of the 15 companies in the portfolio are less than 6% away from 52 week highs

Another advantage of the sector advantage approach is the low correlation between the companies in my portfolio. This is especially important when it comes to managing risk and maximizing returns. A portfolio with low correlation means that the returns generated by each company are less likely to be impacted by the same market conditions, which can help to reduce the overall volatility of the portfolio.

Cʀᴀᴠɪɴɢ Aʟᴘʜᴀ @CravingAlpha

And this chart shows how stability and diversification in our portfolio helped achieve 2.5% absolute returns or 4.45 % outperformance !

So far, our strategy is paying off. In the first month of this year, we dramatically outperformed the benchmark by 5%. This is largely due to the fact that the return contributions in my portfolio are normally distributed, with barely any outliers. This means that the majority of my investments are generating steady, consistent returns, rather than relying on a few big winners to drive the overall performance of the portfolio.

Cʀᴀᴠɪɴɢ Aʟᴘʜᴀ @CravingAlpha

Investment professionals love bar charts. Here's one on how our #SectorAdvantage has performed against it's benchmark YTD. The portfolio consistently outperformed the benchmark in an extremely volatile time.

In conclusion, I believe that consistency is the key to long-term wealth building. By adopting a sector advantage approach and focusing on the best companies across multiple industries, we are able to achieve diversification, reduce risk, and capitalize on India's growth decade.

I'm confident that by following this strategy, we will be able to continue to generate strong returns and build wealth for you over the long-term.