Our Philosophy of Wealth Creation
Our wealth creation is guided by the enduring philosophy of Value Investing School. We employ a bottom-up approach to stock selection; one that is rooted in proprietary fundamental research aided by deep Market Intelligence. Pragmatism of value approach and our teams grounding in the heritage & natural environment of Kerala has helped us develop culture and work ethic which is unique in its form and core to our consistent wealth creation history.
EQ is Equity
At Equity Intelligence we live and breathe equities. Value investing in equities is all that we do. We do what we enjoy and enjoy what we do!
Coconut tree, the Kalpavriksha
A well-made investment is just like a well planted coconut tree (often called കല്പവൃക്ഷം Kalpavriksham) – you can reap the fruits of your investments for many years as it matures. “Sow now and reap later” is basic law of the farm that our founder has imbibed as a passionate farmer himself.
“You reap what you sow.”
The backwaters
Water stands for flow, change, simplicity, and adaptability. Being "formless" and not letting oneself be trapped in any certain mindset is a very important characteristic of value investors. Instead, an investor should always adapt to new situations, change, and grow. Trust us, fishing in the backwaters is no different from sticking one’s neck out and looking for multi-baggers.
"Water can flow, or it can crash. Be water, my friend" – Bruce Lee.
Value Investing
Think like an Owner
"Owner’s mindset" was one of the key mindsets that the father of value investing, Benjamin Graham, proposed. When you purchase a stock, you purchase an "ownership interest" in the underlying business. That may seem self-evident, but many people buy stocks thinking only of the ticker price and the paper to be traded in the marketplace.They don’t think about the underlying business.
Thinking like an owner would simplify matters and provide the much-needed mental discipline to apply business principles to your investing.
Margin of Safety
One of Graham's most famous ideas, “Margin of Safety”, is the gap between the price paid and the inherent value. Investments can go wrong at times, leading to losses. The concept of the “Margin of Safety” mitigates the chances of incurring catastrophic losses. Investing, inherently, is a form of betting on an uncertain and unpredictable future. However smart an investor or analyst may be, he or she is bound to make mistakes. Miscalculations are a common feature of the research exercise. The higher the margin of safety, the lower the chances for losses.
"Mr. Market" and
his vagaries
Another famous contribution of Benjamin Graham to the literature of value investing is the idea of "Mr. Market" - an emotional and irrational partner who offers to either buy you out or sell you his share every day.
"Mr. Market -- he's kind of a drunken psycho. Some days he gets very enthused, some days he gets very depressed. And when he gets really enthused, you sell to him, and if he gets depressed, you buy from him. “There's no moral taint attached to that" - Warren Buffet
"Price" and "Value" are not the same
"Mr. Market's job is to provide you with prices; your job is to decide whether it is to your advantage to act on them. You do not have to trade with him just because he constantly begs you to" - Benjamin Graham
The price that one encounters on the stock market is not the same as the "Value" of the underlying business. Knowing this distinction is critical for sound investing. Value is a rational judgement about the real business that you, as the stock owner, get to own on the purchase. All the future earnings make up the "Value". A value investor always compares the "value" of various businesses versus the "price" traded in the marketplace - assessing the discount or premium of each.
Value Investing
Think like an Owner
"Owner’s mindset" was one of the key mindsets that the father of value investing, Benjamin Graham, proposed. When you purchase a stock, you purchase an "ownership interest" in the underlying business. That may seem self-evident, but many people buy stocks thinking only of the ticker price and the paper to be traded in the marketplace.They don’t think about the underlying business.
Thinking like an owner would simplify matters and provide the much-needed mental discipline to apply business principles to your investing.
Margin of Safety
One of Graham's most famous ideas, “Margin of Safety”, is the gap between the price paid and the inherent value. Investments can go wrong at times, leading to losses. The concept of the “Margin of Safety” mitigates the chances of incurring catastrophic losses. Investing, inherently, is a form of betting on an uncertain and unpredictable future. However smart an investor or analyst may be, he or she is bound to make mistakes. Miscalculations are a common feature of the research exercise.The higher the margin of safety, the lower the chances for losses.
"Mr. Market" and
his vagaries
Another famous contribution of Benjamin Graham to the literature of value investing is the idea of "Mr. Market" - an emotional and irrational partner who offers to either buy you out or sell you his share every day.
"Mr. Market -- he's kind of a drunken psycho. Some days he gets very enthused, some days he gets very depressed. And when he gets really enthused, you sell to him, and if he gets depressed, you buy from him. “There's no moral taint attached to that" - Warren Buffet
"Price" and "Value" are not the same
"Mr. Market's job is to provide you with prices; your job is to decide whether it is to your advantage to act on them. You do not have to trade with him just because he constantly begs you to" - Benjamin Graham
The price that one encounters on the stock market is not the same as the "Value" of the underlying business. Knowing this distinction is critical for sound investing. Value is a rational judgement about the real business that you, as the stock owner, get to own on the purchase. All the future earnings make up the "Value". A value investor always compares the "value" of various businesses versus the "price" traded in the marketplace - assessing the discount or premium of each.
Nurtured by Tradition
Nature thrives and rules in every nook and corner of Kerala, the God's own Country. Mother nature teaches us the lesson of Adaptability. From scorching summer heat to pouring monsoon showers, from the wild Arabian Sea waves to the moody Western Ghats, life is always about constant change, and the only way to survive and thrive is by being adaptive. The economy and markets are no different, and the only way to remain relevant is to be Adaptive.
Kerala’s unique cosmopolitan and liberal culture has evolved through a synthesis of ancient Dravidian and classic Vedic heritages. For instance, Kerala’s own indigenous form of martial art – perhaps the oldest surviving, mother of all martial arts - Kalarippayattu, is a classical Dravidian combat technique that integrates the best of Dhanurvedic and Ayurvedic knowledge about body and mind.
Rich lessons from
God’s Own Country
Continuous Learning
Holistic Awareness
Endurance of Wealth
Simplicity is a Virtue
Collaborate and Complement
Process vs Outcome
Continuous Learning – Art & Science of the craft
The development and mastery of Kalarippayattu come from the tradition of constantly learning, adapting, and improving the techniques by observing what techniques are practical and effective. Years of Kalarippayattu make the practitioner nimble and dexterous - one becomes so loose-jointed and supple that he or she can turn their bodies contrary to instincts with ease.
"Our battles are waged in the Stock Markets"
Just like a Kalari practitioner who masters his mind and body and eventually learns to flow with nature and use its forces rather than resisting it them, we at EQ strive to generate alpha not by resisting Mr. Market’s vagaries, instead by using his forces to our advantage through daily practice, self-control, agility, flexibility, and conviction.
Holistic Awareness – Inside and Outside
Kalari means training ground or battleground, and payattu means training in martial arts. It stresses the importance of having a holistic approach that uses the body, the mind, and the weapon in unison.
മനസ്സെത്തുന്നിടത്തു കണ്ണെത്തണം കണ്ണെത്തുന്നിടത്തു കയ്യെത്തണം
(eyes should follow the mind with ease and arms should follow the eyes with ease)
In investing too, we seek to observe and perceive markets and opportunities with a holistic lens. "Adaptability" and "Holistic Awareness" are what we value immensely in our day-to-day existence as investors. In an era of immense flows of data - mastering what to imbibe and what to avoid requires daily practise and self-control, like in Kalarippayattu.
Endurance of Wealth – Save & Protect
സമ്പത്ത് കാലത്ത് തൈ പത്ത് നട്ടാൽ ആപത്ത് കാലത്ത് കാ പത്ത് തിന്നാം
(Save in times of prosperity to tide through times of hardship)
Probably one of the most famous adages in Malayalam, it says how saving and preserving wealth was an integral part of Kerala culture. When it comes to wealth and treasures, nothing beats the Padmanabhaswamy temple at Thiruvananthapuram, the richest place of worship in the whole world.
Wealth is what you accumulate, not what you spend.
Simplicity is a virtue
The lifestyle and simplicity of the Travancore Royal Family, who owns the Padmanabhaswamy temple, were once a cause of envy for even Mahatma Gandhi, who himself lived a life of austerity.
താണ നിലത്തേ നീരോടൂ
(Water flows downhill)
Being simple and humble is a very important characteristic of value investors. Mr. Market has the ability to humble anyone, regardless of who they are.
"Simplicity is the highest form of Sophistication"
Collaborate and Complement Skills
Chundan vallams, magnificent snake boats used in boat races, are up to 140-foot-long canoes made of wood that can carry up to 128 rowers.
ഒത്തു പിടിച്ചാൽ മലയും പോരും
(With combined effort, even a mountain can be moved.)
Originally built as war vessels, commanding these big water vessels through turbulent backwaters to victory is no mean task and requires an immense coordinated team effort. Team EQ, like a Chundan vallam, is paddling ahead in unison to success under Mr. Porinju Veliyath - an able amarakkaran (helmsman) leading us from the front.
Process vs Outcome – Journey is the destination
Kerala is host to a plethora of traditional festivals that take place throughout the year. These grand festivals, be it the 10-day-long Onam, or the spectacular Thrissur Pooram, or the numerous perunnals and nerchas, showcase a glimpse of the rich cultural heritage and religious harmony of the state.
ഇല്ലം നിറ, വല്ലം നിറ, ഇല്ലത്തെ പത്തായം നിറയോ നിറ നിറ
(Fill, oh fill! Fill the house, fill the troves, fill them all with abundance)
Keralites are nothing short of connoisseurs when it comes to celebrating wealth , every moment of life. Each of us at team EQ celebrate life by doing what we enjoy and enjoying what we do
Endurance of Wealth – Save & Protect
സമ്പത്ത് കാലത്ത് തൈ പത്ത് നട്ടാൽ ആപത്ത് കാലത്ത് കാ പത്ത് തിന്നാം
(Save in times of prosperity to tide through times of hardship)
Probably one of the most famous adages in Malayalam, it says how saving and preserving wealth was an integral part of Kerala culture. When it comes to wealth and treasures, nothing beats the Padmanabhaswamy temple at Thiruvananthapuram, the richest place of worship in the whole world.
Wealth is what you accumulate, not what you spend.
Simplicity is a virtue
The lifestyle and simplicity of the Travancore Royal Family, who owns the Padmanabhaswamy temple, were once a cause of envy for even Mahatma Gandhi, who himself lived a life of austerity.
താണ നിലത്തേ നീരോടൂ
(Water flows downhill)
Being simple and humble is a very important characteristic of value investors. Mr. Market has the ability to humble anyone, regardless of who they are.
"Simplicity is the highest form of Sophistication"
Collaborate and Complement Skills
Chundan vallams, magnificent snake boats used in boat races, are up to 140-foot-long canoes made of wood that can carry up to 128 rowers.
ഒത്തു പിടിച്ചാൽ മലയും പോരും
(With combined effort, even a mountain can be moved.)
Originally built as war vessels, commanding these big water vessels through turbulent backwaters to victory is no mean task and requires an immense coordinated team effort. Team EQ, like a Chundan vallam, is paddling ahead in unison to success under Mr. Porinju Veliyath - an able amarakkaran (helmsman) leading us from the front.
Process vs Outcome – Journey is the destination
Kerala is host to a plethora of traditional festivals that take place throughout the year. These grand festivals, be it the 10-day-long Onam, or the spectacular Thrissur Pooram, or the numerous perunnals and nerchas, showcase a glimpse of the rich cultural heritage and religious harmony of the state.
ഇല്ലം നിറ, വല്ലം നിറ, ഇല്ലത്തെ പത്തായം നിറയോ നിറ നിറ
(Fill, oh fill! Fill the house, fill the troves, fill them all with abundance)
Keralites are nothing short of connoisseurs when it comes to celebrating wealth , every moment of life. Each of us at team EQ celebrate life by doing what we enjoy and enjoying what we do
Continuous Learning – Art & Science of the craft
The development and mastery of Kalarippayattu come from the tradition of constantly learning, adapting, and improving the techniques by observing what techniques are practical and effective. Years of Kalarippayattu make the practitioner nimble and dexterous - one becomes so loose-jointed and supple that he or she can turn their bodies contrary to instincts with ease.
"Our battles are waged in the Stock Markets"
Just like a Kalari practitioner who masters his mind and body and eventually learns to flow with nature and use its forces rather than resisting it them, we at EQ strive to generate alpha not by resisting Mr. Market’s vagaries, instead by using his forces to our advantage through daily practice, self-control, agility, flexibility, and conviction.
Holistic Awareness – Inside and Outside
Kalari means training ground or battleground, and payattu means training in martial arts. It stresses the importance of having a holistic approach that uses the body, the mind, and the weapon in unison.
മനസ്സെത്തുന്നിടത്തു കണ്ണെത്തണം കണ്ണെത്തുന്നിടത്തു കയ്യെത്തണം
(eyes should follow the mind with ease and arms should follow the eyes with ease)
In investing too, we seek to observe and perceive markets and opportunities with a holistic lens. "Adaptability" and "Holistic Awareness" are what we value immensely in our day-to-day existence as investors. In an era of immense flows of data - mastering what to imbibe and what to avoid requires daily practise and self-control, like in Kalarippayattu.