How do you time entry and exit from the portfolio? Do you take cash calls?
We do not take any cash calls and we believe nobody can time the markets, at least we do not have the ability to do so. The rate at which fundamentals of a company compound (and hence its share price) over the long term is inversely correlated with the quantum of benefit that an investor can achieve by perfectly timing their purchases at the bottom of the share price trajectory. Moreover, for a portfolio consisting of high-quality companies, benefits from a fully invested portfolio’s rebalancing in the aftermath of a share price dislocation far outweigh the small potential benefits related to the perfect timing of entry and exits in such high-quality stocks. Hence, an investor seeking to invest in companies with high-quality fundamentals should not wait for a market correction before investing.