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Our service is focused on self-directed investors who are tired of the poor returns they’ve obtained via traditional PMS firms, brokerage houses and poorly performing financial newsletters. Our only goal is to help you make the transition from an emerging to a full-fledged high net worth investor.
My name is Ankur Shah and I’m the Founder and Managing Editor of the Value Investing India Report. I’m a graduate of Harvard Business School and I’ve spent the last ten years of my life as a professional equity research analyst. With a proven track record as a professional investor, I finally decided to launch the Value Investing India Report to help my clients to compound their capital over the long-term and across market cycles.
I set-up the Value Investing India Report for investors who believe in value investing, but don’t have the time and energy to sort through annual reports, earnings announcements and build full financial models. My goal is to provide you with the highest-quality stock ideas for the Indian market on a monthly basis, using institutional quality data, research and analysis.
We follow a value investing methodology because it’s the most effective way to produce market beating returns. Period.
Ibbotson Associates and the Center for Research in Security Prices conducted a truly comprehensive study on the performance of growth vs. value stocks and published the results in a white paper titled A Comprehensive Set of Growth and Value Data. The study definitively showed that value beats both growth and the overall market over long periods of time.
From 1968 – 2002, a portfolio invested in US growth stocks realized an annualized return of 8.8%. Over the same period, a portfolio invested in US value stocks realized an annualized return of 11.0%.
If the difference does not seem like much, consider that in just 10 years, your brokerage account balance would be more than 22% larger by investing in value stocks than growth stocks. And as you keep investing, the gap becomes even larger.
If you had just invested $1,000 in a portfolio of value stocks in 1968 it would have grown to $34,630 by 2002. If you had invested the same amount in a portfolio of growth stocks over the same period, it would have grown to only $17,520. Your value portfolio would have been 98% larger than your growth portfolio at the end of the period studied.
My personal goal for the Value Investing India Report portfolio is to be the best performing investment newsletter in the industry based on the returns you (the subscriber) receive. I simply don’t want you to outperform the market; I want you to decimate it.
In 2013, the Value Investing India Report (VIIR) portfolio massively outperformed the Nifty. Our performance is proof, you can achieve market beating returns.
I can honestly say that the VIIR model portfolio beat even my highest expectations in 2013. In addition, the outperformance has continued for 2014. The key has been to focus on companies with one specific attribute. What was that attribute? The ability to compound value over time.
The chart below shows that the VIIR model portfolio has continued to outperform over a multi-year period. As of September 30, 2014 the VIIR model portfolio has outperformed the Nifty since inception (June 29, 2012).
Some companies are much better than others at compounding capital. Shouldn’t your goal as an investor be to find the companies that can grow your capital consistently over time? Ofcourse the answer is yes. But you also want to avoid overpaying for these stocks because future returns are also dependent upon the price you pay today.
Although we can’t guarantee future returns, your best shot at outperforming the market is to identify companies that will work hard at compounding your capital over the long term. By subscribing to Premium Access, we’ll highlight to you every month a proven compounder that is trading at an absolute bargain valuation.
Many people get their information about investment ideas from commissioned brokers and financial planners, who are often pushed by their corporate managers to promote investments for reasons having little to do with the needs of their clients.
I get daily e-mails about alpha ideas from my broker that are little more than trading tips. It goes against every investment belief that I hold. The ideas are short-term focused, based on momentum and marginal fundamental analysis. It’s clear that they are only trying to increase their brokerage revenue.
At the Value Investing India Report, we believe in a more straightforward model. Namely, we do the heavy lifting of uncovering and analyzing stock ideas based on a proven value investing methodology; then, when we find ideas that pass our strict investment criteria, we share only the best ones with our Premium Access subscribers. In exchange, we charge no commissions but rather a very reasonable annual subscription fee.
1) No Fees for Assets Under Management. A recent news article called Portfolio Management Services weapons of mass destruction due to their poor performance, non-existent disclosure standards and exorbitant fees. Providers of PMS schemes usually charge 6-8% of total assets under management compared to 2.25% for a traditional mutual fund.
Your PMS provider takes 6-8% of your portfolio every year in fees. Think about it. The entire PMS industry is set-up to extract fees. The worst part is that their performance isn’t even demonstrably superior to that of the market. I bet most investors would be better off buying an index fund for a 0.5% annual fee and would more importantly sleep easier at night knowing their money wasn’t tied up in some arcane and illiquid security.
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