A Sit Down with Gaurav Sharma

Recently, we got the chance to sit down with Gaurav Sharma, founder of Gaurav Sharma smallcases and asked him a few questions to understand his investment philosophy.

What is your investment philosophy or thought process when it comes to investing?

In alignment to the vision of smallcase I have chosen the emotional cycle of the market. The market wants investors’ participation and this creates opportunities for some to enter the market and for some to exit.

The entries and exits have their own rationales and therefore I have chosen fundamentally good stocks such as Businesses having Customer Base and the Growth Story, in which I really want to participate, in their journey and this gives me a connection to understand the Business. 

What are some of the current investment drivers according to you?

Current investment drivers –  I believe this would be very challenging for any research analyst because the world was Living in fear not knowing when to expect World War 3 like situations and global tensions that may lead to a global recession as even mentioned by IMF. So I looked deep into this matter and selected demand driven stocks which factored in all the news in their prices. 

How does your strategy perform across different market cycles? 

We started Accumulating stocks in their Downswing each week in small quantities starting with just 3 stocks and then Diversified into a more meaningful portfolio covering promising growth sectors. But we not only added stocks but in each Upswing sold them partially to help our subscribers book real profit from their investments.

What is your opinion on the current state of the markets and what are your expectations?  

My approach is Relevant and based on observations of Foreign institutional data and Domestic institutional investments in light of global pressure and historical movement of price so our history tells that Indian markets are in a bullish phase and possibilities are we may see a bullish engulfing yearly candlestick on Charts.

I have 3 main reasons in support of my view and 2 warnings that no one should ignore. 

1. We have seen the worst price of crude, highest inflation, strongest USD and none of them hampered the growth story of our economy.
2. Every time in history our markets have fallen because our markets have been dominated by Global factors and FPI. Now they got a counter by retail participants in the form of DII’s, Mutual Funds and smallcase like fintech’s . Buying from Domestic Participants, DII’s acts as a cushion and this we had seen in 2022 when whole year FIIs were the net sellers.
3. Government Banker, RBI spent a good amount of forex reserve to support our currency against rising USD, but if US keep on rising interest rates and Dollar keep on strengthening, US will loose significant amount of orders from other countries and their Deficit will increase, countries may form Trading blocs and start trading in their currency, even the United States did not want this.

Now 2 warnings:

1. Depleting forex reserves is not a good sign so we investors are closely watching the data published on the RBI website.
2. If global recession is a true prediction for 2023 it may trigger a huge sell off. 

Who and why should someone invest in your smallcase?

Answer lies in the question itself. smallcase policies that place users first make the portfolio align to what it says. So when we say we review, it means that a professional research analyst who is publishing the smallcase is constantly sharing the rationales behind selection to help an investor take an informed decision.

1. I select the stocks based on good volume transactions visible in them.
2. I diversify my portfolio so that we can accumulate few stocks and sell few stocks periodically.
3. I review my stocks and share detail coverage of the stocks as reports. 
4. An investor who wants to convert savings into investment opportunities available can explore my smallcases.
5. Investment Advisers who are looking opportunities for their clients can also subscribe to my research .
6. A full time trader who wants to know the latest ideas of stocks with their entry level, stop loss and targets can explore my Active Traders smallcase.

I am approachable on WhatsApp so that my clients can easily contact me and can solve any of the issues they are facing, if the issue is beyond my scope, I seek help from a smallcase professional help desk and they genuinely are very good.

I follow my ethics and I’m best known for my ethics. My source of income is the research that I share as a research analyst and hence I take good care of all my clients and never share with them anything which I feel is not good for our long term relations.