Equities are bought for growth. Having a nominal GDP growth, you might have many stocks.
So, ideally, what I try to look at is that the companies should have at least 1.5x the nominal GDP growth, 1.5x the return on equity (ROE) upon the cost of equity.
So, the return on equity should be 1.5x your cost of equity. And, of course, the quality needs to be very good, and it comes at a reasonable price. And what do I mean by reasonable? It's, of course, relative to the market.
But juxtaposing all the things, as I said, growth, the runway of growth, the quality of promoters, all those things cumulative together led me to stock selection.
So, of course, we do have 270–280 stocks to begin with and find the best ideas from.
I have to then narrow down my portfolio to 50–60 stocks that I run for a particular fund.