Wishing you all a very happy new year. Here is our year end newsletter. We look forward to your feedback. Happy investing.

1. Aurum Capital Year-End Newsletter: Dec 31, 2023
Dear Subscriber,
Wishing you all and your family a very Happy New Year.
We come to an end of a great year for equity investors in India. Investors have been amply
rewarded in this year. In fact equity markets have performed extremely well since the CoVid lows
on Mar 23, 2020 (about 3 years and 9 months). Investors who believed in the India story, invested
in good companies with reasonable valuations, had a process-oriented investment process coupled
with discipline, patience and conviction have had one of the best periods of returns. We are
extremely happy and grateful to the markets which rewarded most of our companies in the list of
companies which were recommended.
Aurum Capital thanks our subscribers and well-wishers who believed in our investment philosophy
and in our value-based investing process. It’s been a great journey of learning for all of us. Driven
by passion, a deep understanding of value investing, cyclicals, sector knowledge, and behavioural
finance, we continue to guide investors to the best of our ability with ethics, honesty and integrity.
Our goal is to work towards financial freedom of our subscribers and to give superior returns.
Our Market Views
The Indian economy is doing very well. We have been saying this for some time that ours is one of
the best-handled large economies. This has resulted in a market capitalization in excess of 4 trillion
USD for the listed universe in India. Many companies are doing very well and may continue to do
well.
However, we must keep re-visiting valuations and ascertaining whether future performance is
already priced in. And whether valuations have run-ahead of the fundamentals. We are trying our
best to find/staying invested in companies where valuations are justified. We do see pockets of
euphoria in many companies and sectors and trying to stay away from them.
We believe the SME sector is in a big bubble. Most new IPOs are coming in at unjustified
valuations. We think one must be very careful there. Also many micro, small and midcaps are in the
bubble space. As an investor, we must check a simple metric like weighted-average PE for our
portfolios. It might not be the only factor on which our decision should be based, but an important
factor. The average PE of the list of companies in our coverage of both our products is about 18,
which gives us solace that we are invested in companies which are not over-valued. Can we
correct? If markets correct, we too can. But we have reasonable confidence that we have a resilient
set of companies which have the ability to bounce back in case of corrections.
We keep evaluating periodically and will keep making necessary callibrations. We do think that
investors must temper down expectations of future returns compared to past returns. And have a
long-term view and take inevitable corrections in their stride and not panic. As in long-term we
continue to remain constructive on the Indian markets. Avoid FOMO, narrative-based investing,
momentum-investing. For us value-based investing has worked and we will keep focusing on that.

2. Remember, we do not lose money in bear markets, we lose money only in bull markets. This is not
intuitive and easy to comprehend. In bull markets our guards are down when we are making easy
money. These are the times, when crap enters your portfolio. Stay away from that temptation.
We re-iterate that we are not negative on the markets from the long-term perspective.
We thank you again for your continued support and confidence in us. Wishing you best and Happy
Investing.
About Us
The founders have a combined experience of 5 decades in the market and well-known in the
industry for providing investor education through different mediums like business channel
interviews and newspaper articles, various forums like CFA institute, leading management
education institutions and various educational webinars, seminars, ad podcasts.
Happy investing.
Regards,
Research Analyst
Aurum Capital
SEBI Registration No: INH000008118
Disclaimer: https://aurumcapital.in/disclaimer
The founders’ contribution to equity investing is chronicled here.
(These are not recommendations)
https://aurumcapital.in/blogs/category/knowledge-series/