- With no long term advantage of Concentrated portfolio over Diversified portfolio (as seen in our research), we do not restrict to small number of stocks by design.
- We manage risk by increasing our allocations to debt when the markets are elevated in terms of valuations. When markets fall, we move money from debt to equity.
- We will stagger entries over a few months and buy stocks only if they meet our growth filters. The staggering helps average the stock purchase.
- The growth triggers we’ve identified could take a few years to take hold, therefore we exit stocks only where company fundamentals or the premise for selection has drastically changed.