Our vision is to generate wealth for our partners through alpha investing, where the reward is much more than the risk taken.
We wish to create a strong platform for retail investors to invest in equities and create wealth.
Biggest requirements to make money in markets is not intelligence, it is emotional control. While an individual investor has several emotional urges, at Whiterocks we have a set of processes which helps us to tide over irrational decisions and maintain the investment discipline.
We aim to outperform the market returns significantly over the long term.
We wish to overcome the short comings of retail investors like emotions in investing, no professional support, no time to analyze companies/ markets, not being able to follow up on investments, converse with managements etc.
We aim to run a very concentrated portfolio of 10-12 stocks where our conviction level is high and which meets our internal standards of assessment.
If you are interested in making sense out of the stock market, then you have come to the right place. I would like to take a moment and explain a few things that might help new traders gain a better insight into what trading is all about. Every valid market approach needs three elements to be effective.
We follow the Benjamin Graham school of value investing. Value investors look for securities with prices that are unjustifiably low based on their intrinsic worth. There isn’t a universally accepted way to determine intrinsic wroth, but it’s most often estimated by analyzing a company’s fundamentals. Like bargain hunters, the value investor searches for stocks that he or she believes are undervalued by the market, stocks that are valuable but not recognized as such by the majority of other buyers. Many value investors do not support the efficient market hypothesis, but they do trust that the market will eventually start to favor those quality stocks that were, for a time, undervalued. We, however, isn’t concerned with the supply and demand intricacies of the stock market. In fact, we are not really concerned with the activities of the stock market at all. In the short term the market is a popularity contest; in the long term it is a weighing machine.
Along with this Focus on Small Cap and Mid Cap ideas, we also layer in the well tested Investment philosophies of Investors such as Warren Buffet, Seth Klarman, Peter Lynch etc. This enables us to find companies with Scalable business model, High Incremental Returns on Capital employed, Good Accounting Practices, Competent Management and Strong Financials. Our consistent tracking of such stocks allows us to BUY them, whenever there is Panic in the market, resulting in very low prices on such Quality Businesses. We and our Clients are always prepared to Act, when others are in Fear. Our Research homework provides us this Conviction and Courage to do so. We always look forward for the Businesses that we understand, Strong economic moat, Sales and earnings growth, Return on equity, Not too much debt, Investment period, Quality of Management & The Big Picture of the company/stocks under research.
“Philosophy is our compass when we’re lost; it provides a road map to success and a path to personal fulfillment.” You cannot stray from a discipline you never defined in the first place. Someone who begins a business starts with a well-researched business plan: it defines opportunities, competitive threats, core strengths, and the like. Behind every business plan is an implicit or explicit business philosophy: a set of principles that lays out one’s role in the marketplace, criteria of success, and overriding priorities. It’s common to assert that “trading is a business”. If so, do you have a business philosophy that explicitly defines your values and priorities? Do you have a concrete plan that explicitly defines opportunity and threat, that guides your interactions in the marketplace?
A professional trader isolates himself from the herd and has trained himself to become a predator rather than a victim. He understands and recognizes principles that drive the markets and refuses to be misleading by good or bad news, tips, advice, brokers’ advice and well meaning friends. When the market is being shaken-out on bad news he is in their buying. When the Herd is buying and the news is good he is looking to sell.You need to get expertise in market timing which is 100% a MUST thing for any successful trader. It’s anti-trend, it’s contra trend, its pattern recognition and price exhaustion are something you need to understand well before trading actively.
With WHITEROCKS, you minimize risks and maximize returns. We provide quick & risk free investing solution
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