Investment Philosophy

Grow Investments with Jamā Wealth Advisory

Jamā Wealth Equity Advisory follows a simple Investment Philosophy called Roots & Wings. A team of industry experts having 30+ years experience in advisory & research carefully selects stock portfolios. They are aided by machine learning algorithms and operate with a transparent model without any hidden brokerages or commissions.

ROOTS

Roots aim to preserve wealth by selecting companies with low debt, consistent ROE/ROCE & promoter integrity.


We prefer to invest in businesses that carry very low debt. This means that their growth is fueled by their customers and through internal accruals.

We like companies that consistently reward their shareholders through high levels of Return on Equity, Return on Capital Employed and Return on Assets. This signals not only an efficient business but also one that is shareholder friendly.

We like promoters who demonstrate both skin-in-the-game and soul-in-the-game. Such promoters retain significant ownership in their business, which prevents the ‘agency problem’.

We like companies that have already run the marathon and have demonstrated stamina. As a corollary, we avoid nano caps, micro caps and baby caps because the intent is to preserve capital first and not be exposed to risks stemming out of promoter integrity (or lack of it).

Roots
 Wings

Wings

Wings aim to increase prosperity by identifying growing companies (sales/profit/cash flows) that are resilient and have pricing and staying power in their markets.


We like companies that have a huge runway of growth ahead of them. Usually they tend to grow 1.5 to 3 x times that of the GDP Growth.

We prefer companies that possess significant operating cash flows. This also indicates that their growth is real, and not manufactured.

Companies that are dominant in their markets and continue to hold good Market Share are preferred.

Wings

Wings aim to increase prosperity by identifying growing companies (sales/profit/cash flows) that are resilient and have pricing and staying power in their markets.


We like companies that have a huge runway of growth ahead of them. Usually they tend to grow 1.5 to 3 x times that of the GDP Growth.

We prefer companies that possess significant operating cash flows. This also indicates that their growth is real, and not manufactured.

Companies that are dominant in their markets and continue to hold good Market Share are preferred.

Wings

Process

Investment is not a static process. Buying and forgetting, or just sitting tight, is a luxury that the smart investor cannot afford. If you don’t review, companies can sink in days or even industries can get upended in months.

We grill each stock with an intense review process that periodically checks for all the fundamentals. The model clinically picks early indicators which help exit risky stocks in time. To err on the side of caution is far more preferable to losing hard-earned capital.

The investment philosophy is fully backed up by a system that takes emotion out of the picture, leading to balanced decisions which augur well for the portfolio.

FOCUS

We focus on quality business across sectors. The emphasis on the business first, and not the sector which is ‘in fashion’. From a capitalisation view, a large & mid cap focus preserves wealth without compromising on growth.




Focus

Results


The model portfolio since launch has delivered a cumulative growth of 70.6% between 22-Aug-2019 and 7-Jan-2021. The quarter on quarter growth of the portfolio is shown in the chart below. This compares well with the Nifty50 and Nifty Large-Midcap Total Returns Indices that includes dividend payouts.
Audited portfolio performance report is available for download on jamawealth.com





Jama Wealth