E3 Strategy to Create Wealth with Samco Flexi Cap Fund
What can an entrepreneur do to increase the profitability of the business? In our view, there are two most feasible and obvious things that an entrepreneur can try and attain: 1. Increase the sales, and or 2. Reduce the expenses Everything else being constant, if a company can increase its sale, then it could generate higher profitability. Besides this, the company may even try and reduce its expenses to increase profitability. So, if the owner can carry out either of these two things, the
HexaShield - Samco Mutual Fund’s
A Closer look at the HexaShield framework that is used to evaluate HexaShield tested companies: HexaShield - Samco Mutual Fund’s1. Competitive and Pricing Power Tests 2. Balance Sheet and Insolvency Tests 3. Re-investment and Growth Tests 4. Corporate Governance and Leadership Tests 5. Cash Flow Tests 6. Regulatory Tests 1. Competitive and Pricing Power Tests The competitive advantage or moat of the company is one of the most important factors that determine whether a business will be able to
The Process of HexaShield Testing
SAMCO's HexaShield testing framework is built on the principles of scalability and co-relation. It is designed to do complex sensitivity and scenario analyses across various risk and return drivers. The core of the HexaShield testing exercises covers many stages including Related Articles: Maintaining Efficient Portfolio Turnover [https://www.samcomf.com/knowledge-center/maintaining-efficient-portfolio-turnover/] Buying Efficient Companies [https://www.samcomf.com/knowledge-center/buying-effic
How does HexaShield Tested Investing work?
HexaShield Tested Investing is only investing in companies that pass the rigorous HexaShield Framework test. The underlying premise of HexaShield tested investing is that we live in an increasingly disruptive world where the lives of businesses have gotten shorter and that the source of all long-term returns is simple - businesses generating high returns on capital and their ability to reinvest at incrementally high rates. On the first aspect, a recent study by McKinsey found that the average li
HexaShield Tested Investing - Introduction
HexaShield Tested Investing - IntroductionHexaShield Tested Investing is a strategy to put to work money with businesses that can endure and survive in a variety of stressful situations and generate superior long-term risk-adjusted returns. It relies on understanding the resilience of companies based on SAMCO's HexaShield framework work that tests and evaluates every company and institution on the 6 most important facets of risks and stress. These tests are meant to measure every company's abil
Maintaining Efficient Portfolio Turnover
The 3rd Leg of the 3E strategy is Maintaining efficient portfolio turnover and cost. Many investors are unaware of precisely how much they are being charged for their investment activity, so let’s have a look at the costs the average investor might incur. Investors believe that the total expense ratio is the only cost that is incurred by them as a part of their investments. But there is also a hidden cost that is not disclosed in any of these figures: the cost of dealing within the fund. When
Buying companies at Efficient Prices
The 2nd leg of our 3E strategy is buying efficient companies at an Efficient Price. Even for the highest quality companies, there will be a valuation at which they are no longer attractive investments which is why it's important that we don't end up paying inefficient prices for our wonderful HexaShield-tested efficient businesses. We understand that our universe of companies will always be more expensive than the rest of the market and we are willing to pay that premium for the quality but we
Buying Efficient Companies
The 1st Leg of the 3E strategy is Buying efficient companies Our strategy endeavours to invest in only the most efficient HexaShiled-tested companies. Samco's HexaShield-tested framework strictly defines and quantifies the definition of a high-quality business. Our investable universe is restricted to a limited set of ~125 businesses from India and the Globe that pass our stringent quality tests and we will construct a portfolio of 25 stocks from this universe. What is an efficient HexaShield-
