New age companies call for specialized stock picking techniques. Hit by the bear market, several fresh issues and established companies have hit rock bottom in terms of valuations.
BM Debut Disrupters will focus mostly on those small and mid-caps that are capable of standing out in their specialized markets.
The idea is to focus on those companies that are expected to have consistent earnings at an above average industry rate for the long term.
Personally, Basant has used this strategy to good effect as discussed in his book 'The Thoughtful Investor'.
We intend to buy those stocks that may have been beaten down with the market downturns and are now available at reasonable valuations – either through spin offs or fresh issues.
We will concentrate the portfolio in a maximum of 15 stocks.
We aim to restrict the portfolio to a selected group of sectors mainly focusing on:
a. Consumer
b. Banking & Financials
c. Technology & Fintech
d. Capital Goods
This small case is tailored for investors who aim to spot value early; in IPOs, turnarounds, and temporarily beaten-down but fundamentally strong companies.
