Stockwire Wealth Insight - Sep 2024

Analyst's Diary: An investing checklist

This month, we take a page out of Pulak Prasad's playbook

This month, we take a page out of Pulak Prasad's playbook

Pulak Prasad is the founder of Nalanda Capital, a Singapore-based firm that manages over $5 billion and invests in listed Indian companies. In his book, 'What I Learned about Investing from Darwin,' Prasad gives us a glimpse into his investing philosophy. To say that his investment philosophy is stringent would be an understatement. He summarises it as "we want to be permanent owners of high-quality businesses". Prasad's approach to investing comprises three sequential steps: Avoid big risks Buy high quality at a fair price Don't be lazy - be very lazy We have created a checklist using his book. Let's get in! Avoid big risks Avoid businesses with dubious promoters: Stay away from a business owned or run by someone who defrauds customers, suppliers, employees or shareholders. Avoid turnarounds: The chances of a failing business making a successful turnaround are slim. Detest debt: Focus on debt-free companies to avoid financial strain during challenging times. Ignore M&A junkies: Be c