Investment Philosophy & Model
Zara’s philosophy as a vehicle for advising monies:
- Zara believes in advising fund deployment based on fundamentals which include margin of safety, meeting estimated cost of capital, minimising financial and management risk to generate reasonable returns across a business cycle of 5 to 7 years.
- Avoiding permanent impairment of capital is paramount to Zara for generating these returns.
We prefer wealth creation through pursuit of opportunities that are tax efficient.
- We believe in long term commitments and see market fluctuations as an opportunity to either sell or buy, keeping value in mind. As such we are not driven by market benchmarks and their movements, but are cognizant of them.
- We believe in making investment commitments when we can reasonably estimate security value, and we are comfortable in forgoing any opportunity, where such value is difficult to estimate.
- On a portfolio basis, our focus is on managing risks and let returns take care of themselves as an outcome of an investment process involving a margin of safety. As such we have no clue on the short-term direction of the markets or individual security and invest exclusively based on valuations.
- The Zara advisory model emphasises transparency, driving cost efficiencies and better risk cognizant returns over time, to read more please click the link Zara Advisory Model