Core investment philosophy of InvestmentWaves is inspired by Anekantavad, the ancient Indian philosophy, which, teaches us, that the kingdom of truth can be achieved through various different ways; and therefore in our opinion, there are several ways to build long term wealth by investing into equities and we respect all investment approaches that leads to long term wealth creation for investors. However, we strongly believe that there is no shortcut to wealth creation other than following simple and disciplined investment process, based on strong investment philosophy, over a long period of time.
In our opinion, one of the major drivers of below par investment performance is the quest for illusory superior returns in short period of time, Benjamin Graham once said. “To achieve satisfactory investment results is easier than most people realize; to achieve superior results is harder than it looks.” We believe that if an investor can just achieve above average results on a consistent basis he will be able to be in the top quartile and will beat 70 to 80 percent of all other investor.
We don’t claim to have a secret sauce for making millions overnight. In fact we firmly believe that the real secret is that there is no secret to make quick money in a legitimate way. Broad-based academic research overwhelmingly demonstrates that simple, systematic and solid processes outperform human experts and the inability of human beings to robustly outperform simple systematic processes holds true for the world of investing as well.
“If you do fundamental trading, one morning you feel like a genius, the next day you feel like an idiot…by 1998 I decided we would go 100% models…we slavishly follow the model. You do whatever it [the model] says no matter how smart or dumb you think it is. And that turned out to be a wonderful business.”
–Jim Simons, Founder, Renaissance Technologies
Therefore, we focus entirely on developing a disciplined investment process that intends to collect dynamic factor premiums and to capitalize on twin benefits of avoiding behavioral biases while investing and capitalizing on behavioral errors of others.
We always believe that there is a telling difference between knowing and doing. Everyone knows what is good for health and wealth but most of us would agree that following simple good habits like eating healthy food, going for morning walk, investing for long term, staying diversified etc. are some of the most difficult things to practice over a long period of time.
Our mission is to offer investment advice and consulting to both individual investors and corporates to build equity portfolios using simple, systematic and solid investment process backed by sound research. Our dream is to see that people do not fall prey of the common behavioral errors while investing. We want to empower the individual investors to take charge of their own portfolio and to outperform the reference benchmark index with much lower downside risk over a period of full market cycle. In our view markets are not efficient but at the same time difficult to forecast and hence market timing is a futile exercise. Investors should remain fully invested all the time across asset classes in line with his strategic asset allocation.