Our investment philosophy and frequently asked questions
We are value investors. We will look at value buys, mispriced bets, turnarounds, contrarian bets. We will only invest where we find value. This requires an understanding of the underlying sector, understanding the balance sheet and financials, forecasting growth possibilities, and arriving at intrinsic value. Our endeavour is to buy companies where the current price is below the intrinsic value. Our endeavour is to outperform the market during the bull as well as bear phase of the market.
Please visit https://aurumcapital.in/
Please click "Free Sign Up", enter your name, email address, mobile number, and password.
Once registered, the system will directly take you to https://aurumcapital.in/services page, please do an NEFT transfer Or Cheque/DD deposit, or UPI payment depending on the plan you choose (2 years or 3 years option).
If you have used NEFT/UPI transfer Or Cheque/DD deposit mode, please send details of the same to email@example.com. Once your payment is verified, your profile will be approved and you will become a paid subscriber on Aurum Capital. You can then visit https://aurumcapital.in/current-recommendation-new page for current recommendations.
We have Buy, Hold and Exit tabs on our website for the paid subscribers in the Current Recommendations section. If a stock price goes above a certain percentage, it automatically moves into the Hold category.
A new subscriber has to buy stocks from the Buy category only and not from Hold. Price is extremely important for us to get the value. We believe in “Price is what you pay; value is what you get”.
If the stock from the Hold category corrects and comes back into the buy then the new subscriber can buy that. The buy price range and % allocation are also provided against each stock. We may have multiple price range and % allocation for each stock. One can view that by clicking + sign against the stock. We do also list the weighted average buy price and total % allocation for the stock. One can buy at different price levels with respective percentage or at weighted average level with the entire allocation.
The most important aspect of our portfolio is that our model portfolio remains the same as displayed on the screen for all starting from the beginning. We do not remove any exit stocks from the portfolio even if we have to book any loss. Also, while calculating any gains/losses we take average price, close to our recommended price and not the lower end of the price range while calculating gains and the higher end of the price while calculating losses. We never do that.
We are committed to being transparent and conservative in displaying our performance.
Yes, that's what happens. New clients should ideally invest only in the stocks in the Buy zone. Buy zone allocation reduces as the market heats up and stock moves to the Hold zone. Buy zone allocation increases when there is a correction as stocks from the Hold zone move to the Buy zone. This happens automatically by the system. This is for the protection and interest of our clients as it makes them hold onto cash when markets are heated, and makes them invest when there is a correction. This would help them in generating superior returns. We ask all clients to practice one important tenet of investing: patience and avoid one big wealth destroyer: FOMO.
We have designed the system in such a way that it helps us reduce the risk coming from FOMO while helping us with practising patience. Over a period when the valuations become rich, the stocks in the Hold zone are exited and new stocks are suggested. This is how portfolios get aligned over a period of time.
We do not believe in the immediate allocation of a full portfolio at any price. We believe every stock has a buy price, a hold range and an exit price.
We will be publishing research reports to our paid subscribers online on our portal. We will be providing a price range against the stock name to buy, percentage allocation to the stock.
On the Current Recommendations page (only for subscribers), one can track the investments recommended along with the research report, subsequent updates on the stocks, and also exit calls, if any. We inform any changes in the Current Recommendations through email. The subscribers will have to visit the section to get details of the changes.
Subscribers should have 5-7% liquidity maintained at any point in time if we are not 100% invested.
We give about 8-10 recommendations (buy/add/reduce/exit) a year, with suggested portfolio weight in each of the companies. This includes the existing recommendations in the buy zone when a new subscriber joins in or any changes in the allocations. We give periodic updates on the recommendations.
Though our endeavour is to give these 8-10 recommendations (buy/add/reduce/exit) in a year, we give these based on market conditions. If the market is not supportive or if we feel there is over-valuation, we may give fewer recommendations. In case where we give less than 8 recommendations (buy/add/reduce/exit) in a year, we will be extending the subscription period at no cost to the subscriber till a minimum of 8 recommendations (buy/add/reduce/exit) in the subscription period is given. The idea is to not give recommendations just for the sake of it. The primary importance is the interest of our subscribers. If during a year we end up giving more than 10 recommendations (buy/add/reduce/exit) then also we will not reduce the subscription period of the subscriber.
We are market-cap agnostic. We suggest stocks that are above a threshold market-cap with sufficient liquidity. If we find value and suitable opportunity then we can go for large-cap stocks, however, our primary focus remains mid and small-caps.
- The investors who have a minimum investible amount of Rs 10 lakhs or above to invest (over a year) should ideally subscribe to our services. At this minimum amount, it may make economic sense.
- The investors who are planning to invest for a minimum of 3 years. Our services might not be suitable for investors who have a short-term horizon of fewer than 3 years. Our services are suited for long-term investors.
- Investors who understand that during corrections and bear markets, the portfolio can turn negative, though our endeavour will be to protect the investment of our subscribers with a fall lesser than the market during these times.
We give periodic updates as and when necessary. Similarly, we will be giving exit calls in the recommended investments.
We do not recommend buying beyond the range. Our returns will be bench-marked against the buy price we suggest. This will ensure minimum variance from benchmark returns and subscriber returns.
For subscribers who joined after a recommendation is given, we suggest adding only in the Buy range, provided we have not given an Exit call.
We only look at valuations as our core philosophy is value investing.
No, we do not promise any guaranteed returns. Equity investing involves risks, especially for shorter terms and subscriber must understand these risks.
Multibaggers are not planned. They happen during the course of investing. This requires holding and staying put with your winners as long as they are not overpriced. We will be CAGR (compound annual growth rate) focused on our portfolio. As ultimately, CAGR on your portfolio is more important than multi-baggers.
We do not keep a biased view with a preconceived price target in mind. We should evaluate the stock as it moves up or down with fundamentals and valuations in mind. This evaluation is a continuous process. We should keep our approach flexible and that happens only if we are not biased with a price target. This is the precious reason, we do not give any price targets in our reports. In fact, this approach has helped us achieve many multi-baggers in the past. A recent example from our services is of Majesco Limited where we could generate almost 3X returns which otherwise would have been limited had we kept a fixed price target.
We are market-cap agnostic. But we avoid penny stocks. We will be having a threshold market-cap for our recommendations. We will also be considering liquidity in the stocks we recommend. The illiquid stocks have high impact cost and it might be difficult to sell them.
The subscription charges and plans are available on the Services and Pricing page. We do not offer any discounts.
Yes. We will be publishing research reports on our recommendations. We will try to make them, simple and easy-to-understand. We will be doing both qualitative and quantitative research. That includes understanding financials and keeping track of the business on an ongoing basis.
Our endeavor is generate higher returns than markets. Basic philosophy is to look at stocks that can double in 3 years. But, it does depend on market conditions and company performance. We will actively be tracking both. However, we do not guarantee any returns.
Yes, the portfolio can definitely turn negative if there is a correction in the markets or during the bear phase. The volatility exists in the stock markets and that is why we suggest having a long term view of the markets. In long term, the chances of losing money in the right portfolio reduce significantly.
Yes. We will be suggesting when to fully or partially exit our recommended stock. Partial exits will be in percentage. For example, we suggest subscriber sell 3% out of a total 7% of position in the stock "A" in the range of X-Y.
Payment through IMPS/NEFT/RTGS/UPI: Please send an email to firstname.lastname@example.org mentioning your name, account number, bank name, the transaction number and the amount transferred. Once, the payment details are verified from our bank account, your profile will be approved and you will be able to access the paid sections (Current Recommendations and Investor Forum) of the website.
The investor forum will be made available for the paid subscribers. There will not be any limit on the number of questions. But admin reserves the right to respond. If we find queries repetitive, personal questions, technical analysis, market momentum, we may choose not to reply. In general, we would also avoid queries relating to non-recommended stocks in the investor forum. There are 5000+stocks and we may not be covering all. It won't be right on our part to respond and give our opinion without us knowing in detail ourselves. The investors will have an option to ask anonymously. The investor's name will not get published. The investor forum feature is only for the paid subscribers so the admin will know who asked the question. Admin may also allow other subscribers to respond to a question.