How to invest like the co-founder of Motilal Oswal Financial Services

Ever wondered how legendary investor Warren Buffett's wisdom can shape the strategies of leading financial firms? Meet Raamdeo Agrawal, the co-founder of Motilal Oswal Financial Services, who attributes his success to Buffett's timeless principles. In his 2007 annual letter to Berkshire Hathaway shareholders, Warren Buffett discussed 'The Great, the Good, and the Gruesome' businesses. This letter resonated with Agrawal, and he developed his own investment style based on it, which is called QGLP. QGLP stands for Quality (of business and management), Growth (in earnings), Longevity (of quality and growth), and Price (reasonable valuations). The success he found through this investing style led Agrawal to write a book titled 'The QGLP Checklist 25 Questions Frameworks'. While we recommend that all interested investors read the book, here's a brief synopsis of what QGLP represents. Q-Quality Investing in quality companies sounds straightforward. But there's more to assessing quality than meets the eye. Agrawal views quality as a combination of two elements: Quality of business and quality of management. The former is easier to evaluate. According to Agrawal, a quality business should be an industry leader, preferably in a consumer-facing industry. In addition, its leadership should be in the form of a monopoly, duopoly or oligopoly. Lastly, a quality business should not have high amounts of debt. Discerning whether a management is quality far trickier. Agrawal, however, has discovered a few hacks over the years. His book mentions that quality management must be trustworthy, have efficient capital allocation skills, be transparent, and provide adequate communication to shareholders. G-Growth Quality is important, but withou