In Depth Analysis
At Katalyst Wealth we are passionate about sharing our philosophy of value investing, and enabling individuals to become successful investor. We invest and research on opportunities arising out of inefficiencies in the Indian stock markets based on Graham style bargains and high-quality businesses available below their conservatively estimated intrinsic value.
Our background is in fundamental research and we leave no stone unturned when we research a company. We strongly believe in the golden rule of investing: fundamentals and results come first, hope later. We ask the tough questions that others can't or won't. We don't use simple point estimates or rely on management's "pro-forma" presentations. We know that accounting is not standardized and easily manipulated, and we do not hesitate to point out when a company is managing earnings or trying to hide something.
Objective and Independent
We aim to level the playing field between investors and public companies. Our research is completely objective and Katalyst Wealth is not affiliated with any long or short funds, nor do we accept research fees from the companies that we cover.
With no in-house trading department, sales quotas to meet, or underwriting operations, our analysts provide completely independent research. The success of our company is a function of the investment returns earned by our clients. Our independence ensures that our clients' interests are first.
We seek out well-managed companies with unbeatable products or services whose stocks are undervalued or unknown by most investors – and offer the very best to you. For the same we log countless hours researching and crunching numbers before recommending a company.
We look for the following traits in the stocks of companies we invest and recommend:
- Companies that have the ability to generate high returns on capital employed because of the presence of a sustainable moat
- Can grow earnings at a rapid pace without requiring access to outside capital markets
- Are run by able, honest, and owner-oriented managers
- Can be purchased at valuations where the growth component of value equation comes free
Our recommendations incorporate four key analytical categories:
Business Operations: Often the market loses sight of fundamentals and gets caught up in the “story”. Our analytical techniques ensure that the “story” is supported by the fundamentals.
Corporate Governance: Understanding how an executive team is compensated provides insight into its business objectives and accounting choices. We have learned that nothing in accounting happens without a reason and understanding that reason allows us to gauge shareholder value creation and the overall quality of management.
Balance Sheet: Time and time again, accounting scandals and unexpected losses prove that what is “off” the balance sheet is often more important that what is “on” the balance sheet. It is only through a detailed review of financial disclosures that such exposures can be uncovered.
Cash Flow: Companies go bankrupt because they run out of cash, not earnings. Our reports focus on the sustainability of cash flows, not just earnings.
Delivering on Customer's trust
At Katalyst Wealth, we believe the most valuable asset of a business organization is the trust and credibility it enjoys among its customers. Built consciously over years, trust has to be maintained continually through unstinted commitment to quantity and quality of deliverables, and proactive responsiveness to customer needs.