Saurabh Mukherjea of Ambit Capital says that the Oracle of Omaha did not get carried away by macro-noises while investing for the long term.
Investors are often intrigued by billionaire investor Warren Buffett’s investment philosophies, and look to emulate a few of them. A top stock market analyst, Saurabh Mukherjea of Ambit Capital shared one such trait of Warren Buffett which set him apart– he did not get carried away by macro-noises while investing for the long term. “One shouldn’t get too wrapped up in the current day. The macro problems such as pharma, the H1B visa etc appear to be very big. What long-term investing forces you to learn, and Warren Buffett is a living demonstration of this is that don’t get too wrapped up in the moment,” Saurabh Mukherjea, CEO, Institutional Equities of Ambit Capital told ET Now. Saurabh Mukherjea says that Warren Buffett did not lose sleep over what stock markets do on a day to day basis. Warren Buffett is often quoted as saying, “If you aren’t willing to own a stock for ten years, don’t even think about owning it for ten minutes.”
Saurabh Mukherjea says that he has tried to emulate this investment philosophy. “Buy a bunch of high quality companies and sit on it forever. In our case, we cannot really ask people to sit on things forever. We try to condense it to a 10-year period and every year, open a coffee can which we say will last for 10 years and what is absolutely astonishing is year after year this portfolio delivers market beating results — in absolute terms that give returns north of 20%,” he told the channel.
He explained the significance of cutting the noise out and focussing only on the quality of the enterprise. “The ability to focus on the quality of the company and the franchise and cut the macro out, cut the macro noise out I think is a useful trick, it is a very-very hard to do for exactly the reasons you said it is very hard to do but I think it is a very effective skill to develop,” Saurabh Mukherjea told in the interview.