DoorDarshi Advisors

"Put Money to Work"

Position Selling

Idea Generation

Idea Investigation

Position Addition/Maintenance

Idea Ranking

Investment Process

  • Position is sold gradually if:

    • Forward return of the position is among the lowest in the portfolio.

    • New information on the position reduces forward returns.

    • Conviction in the position goes down because of management action

  • A minimum amount of cash is kept in the portfolio to take advantage of future opportunity

  • Break down the idea into three categories

    • Interesting opportunity

    • Not very appealing - re-visit later

    • Never: Bad management, poor industry / governance

  • Interesting opportunity then go through forward return analysis. This is also the time to fill any gaps in our understanding

  • ​All existing positions and new ideas are then stack ranked by future return and confidence in the idea

  • Use screening software to identify good businesses selling at reasonable valuation

  • Investigate positions held by other successful investors​

  • Investigate companies with similar themes, industries that we are already familiar with including old ideas

  • Continuously search for new ideas / opportunities

  • Once an idea has ​high forward returns and there is high conviction, it is gradually added to the portfolio.

  • Percentage allocation to the idea increases as the confidence increases, price falls (and future return increases). Ideally, both happens.

  • All positions in the portfolio are continuously assessed against other positions in the portfolio and against new ideas.

  • New information for portfolio positions and competing ideas is continuously reflected in our valuation assessment

  • Understand the business

    • Read atleast 10 Annual Report

    • Read quarterly reports, blog postings, talk to fellow investors and scuttlebutt

  • Understand the management

    • Join quarterly calls and hear management interviews

    • Assess how management responds in tough situation

  • Summarize key takeaways and decision that we have reached based on the detailed due diligence