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Are you able to outperform your neighbour?

Imagine this: You’re living in the bustling city of Mumbai, a place known for its vibrant markets and entrepreneurial spirit. Right next door, there’s this neighbour of yours. Let’s call him Raj. Raj is an interesting character. He’s not your typical investor. In fact, he probably wouldn’t even use the word ‘investor’ to describe himself. He’s never seen a balance sheet in his life, and the closest he’s come to analysing a company is deciding which brand of tea offers the best value for money at the local bazaar.

Now, Raj has a simple strategy. Every six months, he takes a look at the top 50 companies by market capitalization and invests in them. That’s it. No meetings with management, no annual reports, no deep dives into financial statements. Just a straightforward, disciplined approach to buying into the biggest companies out there.

Now, let’s turn the spotlight to you. Fresh out of college with a degree in finance, you’re armed with all the tools and knowledge to dissect the market. You’ve devoured books on investment strategies, listened to countless hours of advice from the gurus, and you’re always on top of the latest market trends. You’ve got a team of analysts at your beck and call, ready to dissect every bit of information to ensure you make the most informed decisions possible.

Given your arsenal of knowledge and resources, you’d think beating Raj at the investment game would be a walk in the park, right?

But is that really the case?

Here’s the twist in the tale: Despite all your expertise and resources, outperforming Raj is not as straightforward as it seems. It turns out, this phenomenon isn’t unique to the Dalal street. Across the globe, and yes, even in the complex and fast-paced markets of India, most fund managers find themselves in a similar predicament, struggling to outperform their benchmarks.

Well, it turns out it is not that easy. As various articles have shown, globally and in India, most fund managers underperform their benchmarks.

But why?

It boils down to a fundamental truth about investing that contradicts human nature. We complicate what should be simple. We follow the herd, get swept up in narratives, let emotions cloud our judgment, and rely on gut feelings over strategy. We crave complexity when simplicity often holds the key.

Your neighbour’s strategy shines because it embodies four core principles:

  1. Simplicity: It’s straightforward and easy to understand
  2. Consistency: It’s applied regularly, without fail
  3. Discipline: It sticks to its guns, come bull or bear markets
  4. Steadfast criteria: It does not change with every market cycle

It’s a call to appreciate the value of disciplined, consistent approach. It’s a lesson in humility. The market is a complex beast, and while knowledge and analysis are invaluable tools, they are not a guaranteed path to success. Sometimes, a simple strategy, executed well, can be just as effective, if not more so.  

With this thought, we challenged ourselves to craft a portfolio using an approach that’s as straightforward as it is effective. The results? They’ve been nothing short of remarkable. But we didn’t stop there. We wanted to ensure that this knowledge reached those who could benefit from it the most.

So, we took to the digital stage and hosted an exclusive webinar for our Bastion CORE subscribers. This wasn’t your average financial talk. We deep dive into our quantitative strategy, breaking them down into digestible, actionable insights. Our goal? To empower you with a method that’s not only easy to understand but also incredibly effective.

Now, we’re extending an invitation to you. Join us on this journey. Learn how our simplistic approach to portfolio creation can unlock new possibilities for your investments. This is your chance to gain access to strategies that could redefine your financial future. Don’t let this opportunity pass you by.

If you find something that is truly a great idea and so cheap, and you think you understand something about business that even the management does not understand, then you need to back up the truck and buy.

Remember, in our world, sometimes less is indeed more.

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