MotilalOswal Buy Right Sit Tight Philosophy
Investment philosophy – ‘Buy Right: Sit Tight’
At Motilal Oswal NTDOP Asset Management Company (MOAMC), the investment philosophy is centred on 'Buy Right: Sit Tight‘ principle.
Why ‘Buy Right: Sit Tight’ is
significant?
·
Real wealth is created by riding out the of the
growth curve of quality companies and not by trading in and out in response to
buy, sell and hold recommendations.
·
This philosophy enables investor and manager
alike to keep this on the businesses they are holding rather than get
distracted by movements in share prices
·
An approach of buying high-quality stocks and
holding them for a long term wealth creation motive results in drastic
reduction of costs for the end investor.
·
While BUY RIGHT is largely the role of the
portfolio manager, SIT TIGHT calls for involvement from the portfolio manager
as well as an actor. This brings in greater accountability from the manager and
at the same time calls for better involvement and understanding from the store
resulting in better education for the latter.
Long term multiplication of wealth is
obtained only by holding on to the winners and deserting the losers.
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