It aptly combines the three inter-related trends of investing:
Business, Financial & Price trends
Investment Rationale
Trends Trilogy aptly combines the three inter-related trends of investing:
- Business Trend
- Financial Trend
- Price Trend
The basic idea is to invest in:
- High growth company
- Emerging Sector or Sector at new high
- Large Opportunity Size
- Charts supported by good earnings
Trends Trilogy small case is a classic blend of the two main school of thoughts in the equity markets- Fundamental and Technical Analysis, giving you the best of both worlds. Fundamental analysis will help us to pick the right company and technical analysis will provide the correct entry and exit timings considering the earnings visibility. Most importantly, this blended approach helps us to avoid bias, build conviction and ride the trend for a long period of time.
CDSL is a good example to explain this strategy. PAT of this company was rangebound before COVID. After COVID, in April 2020, we could see emerging data points on the increasing number of demat accounts. We invested in this company after the quarterly results of June 2020. Henceforth, good results and charts analysis helped us to ride the trend making it 4x of our investment amount.
