Our Investment Philosophy

We only invest in companies that have high tangible growth potential. The real value is in high-growth companies in any sector that has yet to be recognized by securities market participants. We intend to seize that opportunity before others do. The price is important to us, but the first priority is the business. We are primarily interested in purchasing high-quality businesses at a reasonable or low cost.

What exactly do we mean by the Margin of Safety? It is the difference between the stock's intrinsic value as determined by us and its share market price. Intrinsic value is derived in a highly subjective manner because it involves certain assumptions made by the person calculating it. At Axanoun, we have specially derived models for calculating Intrinsic Value, which helps us to cut the unnecessary noise involved in the stock and the sector, which aids in decision making about a stock or sector. This clearly indicates that we will have the opportunity to purchase a company worth $1 for merely 60 cents. We have a standard protocol for purchasing companies with a 25 percent margin of safety.

“In Investing, what is comfortable is rarely profitable.” – Robert Arnott. We are always on the lookout for opportunities that no one else is looking for. We intend to be the first to ride the opportunity wave, before other market participants recognise it. Our distinct method of researching a company or industry distinguishes us from the competition. We trust our process, which allows us to identify and capitalise on untapped opportunities.

We maximize returns on capital invested while assuming the least amount of risk. Taking a high risk for a small return risks eroding our invested capital while taking a low risk means we miss out on a large wealth-creation opportunity. The only way out is to invest our capital at a calculated risk. The risk-reward ratio is crucial in both the quantitative and qualitative aspects of our investments

 It is critical to examine the management that runs the business; this is a critical component of any successful business. We seek management with A-level skills, optimistic company planning, and a clear high-level vision of the business. Whenever we have a choice between a stalwart management team with great business and a stalwart business with highly motivated management, we always go with the latter because that is where the management will provide us with a high return in the long run.

We at Axanoun believe in our abilities to maximize returns when we hold a position for an extended period of time because that is where we can benefit from the growing company. Money is made not by frequently buying and selling stocks, but by holding that position for an extended period of time. There are numerous examples of people who have made money by holding a position for an extended period of time.