Exploring the investing strategy of Raamdeo Agrawal

The veteran

Raamdeo Agrawal is the co-founder of Motilal Oswal Financial Services. He has popularised an investment style called QGLP.

What is QGLP

QGLP stands for quality, growth, longevity and price. Agrawal considers these four factors pivotal to wealth creation. Swipe to know each in detail.

Q – Quality

He believes quality has two aspects: Quality of business and quality of management. Swipe to know how to assess them.

Quality of business

A quality business, per Agrawal, should be an industry leader in a consumer-facing sector, ideally a monopoly, duopoly, or oligopoly, and should have low debt.

Quality of management

Agrawal suggests a quality management must be trustworthy, allocate capital efficiently, be transparent, and communicate well with shareholders.

G – Growth

Agrawal warns of quality traps—high-quality firms with sluggish growth. Look for signs of growth like capacity expansion, new products, geographic expansion, etc.

L – Longevity

Wealth creation needs robust quality and strong growth over long periods. Agrawal urges Investors to ensure the factors driving a company's success are sustainable.

P – Price

Valuations can be the Achilles' heel of investments. Agrawal says stocks are attractive when priced below value. Ensure the price is reasonable for the expected rewards.

A free gift

We have filtered some stocks tailored to Raamdeo Agrawal's investing style. Click on the link below to access the list and the full story.