The Benefits of Timing are Inversely Correlated with the Quality of Fundamentals

Citations · 5

• “even perfect timing of entry points (i.e. investing every single year at the year's lowest share price) does not generate more than 2-3% alpha”

  p#9 · confidence 95%

• “For companies whose share price compounds at a weak rate (say less than 10% CAGR), perfect timing of entry points can generate 5-10% alpha”

  p#10 · confidence 95%

• “The quantum of benefit from such rebalancing of portfolios with high quality stocks is as high as 5-10% per annum, and hence it far outweighs the potential benefits of perfect timing”

  p#18 · confidence 95%

• “Asian Paints's consistently delivered high share price performance in the years after the FY10 recovery i.e. +20 to +30% in FY11, FY12 and FY14, and more than +30% in FY13 and FY15”

  p#24 · confidence 95%

• “investors who waited for a market correction before deploying top-ups from their recurring income into Marcellus' CCP PMS would have experienced a significant drag (of at least 3-5% on annualized returns, if not more) vs SIP based investments”

  p#29 · confidence 95%