Investment Portfolio Tips

How We Built Our Family Office and What We Learnt Along the Way After I joined the family business in 2017, we established our family office. What began as simple allocations soon evolved into a comprehensive investment journey spanning PE, VC, public markets, and alternatives. We’re evolving. We’re investing. We’re learning. Here are a few key takeaways that have shaped our perspective on capital, conviction, and compounding. (Part 1) 1. Always Ask: Why Is This Deal Coming to You? If a deal lands on your table and it’s not with larger funds or more established family offices, pause and ask: why? There’s often an angle, sometimes it’s a genuine fit, but often, there’s a reason it’s not elsewhere. 2. Relationships Matter More Than Firms Advisors and brokers are everywhere, but only a handful genuinely have your long-term interest at heart. Build deep, trusted relationships with a select few. The right advisor can transform your deal flow and outcomes. 3. Institutionalise Your Process Having a clear Investment Policy Statement (IPS) is a game-changer, especially as families grow and more voices join the decision-making table. We operated without one for too long, and implementing structure has brought much-needed discipline. 4. Avoid FOMO and Time-Pressured Deals If you’re being pressured to commit quickly, walk away. There are always more opportunities. As a family office, you don’t need to chase every “hot” deal, focus on what you understand deeply and be patient. 5. Be Wary of Late-Stage/Pre-IPO Rounds We’ve largely avoided pre-IPO deals, valuations are inflated, and the upside is limited. The J-curve returns are usually already captured by early investors. Tempting brands at this stage often offer familiarity, not value. Real long-term gains often lie after the listing, not before. 6. First-Time Managers We’re cautious with first-time funds, which often face operational teething issues. Unless we have deep conviction in the team, we prefer managers with a solid track record and robust systems already in place. Fees may vary slightly, but always opt for A-grade managers. 7. Cost of Returns Matter Returns only matter after fees and taxes. We actively monitor our “cost of return” across asset classes, including the amount we pay in management fees, carry, transaction costs, and taxes, relative to what we earn. Post-fee, post-tax returns are the true benchmark. This discipline keeps capital efficient and ensures we’re tracking it across asset classes and portfolio level. 8. Say No, But Keep Showing Up Discipline is everything. We track how many deals we reject; if the “no” ratio isn’t high, we’re probably not being selective enough. Saying no is a superpower in this business. But that shouldn’t stop you from meeting a lot of people. Show up. Listen. Learn. 📣 P.S. We’re hiring for a senior position at our family office. If you’re someone who wants to join and scale it with us, email me at: jai@malpani.com

The surprising fact about bond returns: In a study published in 2014, Marty Leibowitz, Anthony Bova, and Stanley Kogelman show that returns for the Barclays U.S. Government/Credit Index have consistently converged towards the index's initial yield-to-maturity. Over their study period, the index has had a relatively constant duration of about six years – consistent with the time horizon they used to measure convergence. Therefore, historically, the simplest of the rules of thumb seems to have prevailed: returns have converged to the initial yield-to-maturity at a time horizon that matches duration. This result holds across a variety of rate paths. It begs the question: why are bond investors and financial commentators in the media so worried about rising rates? If the horizon is long enough, it doesn’t matter whether rates go up, down, or sideways. What matters is the starting yield! (From Beyond Diversification, McGraw-Hill. The paper I'm talking about is: Leibowitz, Martin L., Anthony Bova, and Stanley Kogelman. 2014. "Long-Term Bond Returns under Duration Targeting", Financial Analysts Journal, Volume 70, Number 1, pp. 31–51.)

10 easy rules to avoid the typical mistakes angel investors make. Enjoyed my time in Las Vegas this week working with some of the best players, past & present, in the NBA on building a legacy through investing with the Pro Athlete Community (PAC) team. Here are some of the things we discussed in the Venture Capital segment run by sequel: 1. Do not start angel investing until you have other parts of your investment portfolio in place (stocks, bonds & real estate). It's high-risk and illiquid. 2. Diversification drives higher returns. The average returns for a portfolio of 80 startups is 2x that of a portfolio of 10 over a 7 year period. 3. Always write the same cheque size. Create an annual budget for startup investing. Divide by 10. That's your cheque size. Don't vary it based on confidence in a particular founder. I've learned this lesson painfully by losing out on $16m in potential returns - investing my smallest ticket in one of my best performers. 4. Get comfortable saying no. At sequel we say no to ~600 startups for every 1 startup we say yes to. By getting in your reps saying no - it will be much easier to spot the outstanding founders. 5. Invest with the best. VC is an access class, not an asset class. We have analysed all athlete venture investments since the 1990s. Those who invested alongside top tier VCs generated 17x the returns of those who didn't. 6. Invest in relationships. VC is a small world with a long-lasting memory. Meet the best investors, prepare intensely for those meetings and try to provide value to those people. 7. Founder ambition is more important to assess than market size. The biggest barrier to an outlier exit in almost any company is the founder's willingness to persist when things are tough - and say no to the first acquisition offers that come in. 8. Harness your superpower to gain access. What are you best at? What can you help with? Pro-actively add value using your super-power to gain access to the best investments. 9. Sending the money is just the start. Find ways to help post-investment to build strong relationships with founders and co-investors. At sequel we help with all the things a platform VC would (hiring, fundraising, advice) but our superpower is helping with storytelling. 10. Invest in companies and markets you want to learn about. If you're not interested - you're unlikely to roll-up your sleeves and help post-investment. Any rules I've missed?

I love teaching people about angel investing!! Not because I think I’m an expert, but because I’ve made a lot of mistakes, and I’m not afraid to talk about them. After doing my first 19 angel deals, here’s what I’ve learned (the hard way): -Don’t invest in a friend’s company just because they’re your friend. That was my first mistake. Never again. -The MVP matters. If a founder can’t hack together a demo or find someone to help them do it, I’m out. It’s never been cheaper or easier to build a first version. -The only two roles you need to get to $1M in ARR: someone to sell, and someone to build. I backed a team with a product person and an ops person. Neither wanted to sell or code. They’re totally stalled. -If you haven’t looked at 100 deals, you’re not ready to write a check. -Deals 100 through 1,000 are your classroom. Write the smallest checks you can. This is where you sharpen your instincts and define your thesis. -Don’t let charisma blind you. The best talkers will try to shortcut your process. Big red flag. -Be skeptical about why a deal is in your inbox. Adverse selection is real and it’s actively working against you. -Do your own market sizing. Founders love a big TAM slide. ChatGPT makes it easy to run your own numbers. Use it. -If no professional investor wants to lead the round, ask yourself why. -Don’t get cocky. Most venture funds don’t make money. You’re not smarter than the pros, act accordingly. -The best deals are the ones you 1) understand, 2) can help with, and 3) have a real relationship with the founder. -Founders who reject feedback? Pass. -Good founders give updates when things are going well. Great founders give updates when things are hard. I’m still learning. If you’ve done 100+ deals, tell me what I’m still missing.

Berkshire Hathaway was recently the first non-technology company to pass $1 trillion in market capitalisation. The late Charlie Munger's brilliance was fundamental in creating this outcome. Here are his most useful investing principles: 1. Risk • Start investment analysis by quantifying risk. Reputation is your most precious asset - guard it fiercely. • Build a moat around your investments. A healthy margin of safety isn't paranoia, it's prudence. 2. Independence • Think for yourself. The crowd is often wrong, and following it leads to mediocrity. • Remember: agreement doesn't equal correctness. Your analysis matters, not popular opinion. 3. Preparation • Read voraciously. The best investors are intellectual omnivores, always hungry for knowledge. • Cultivate grit. Winning isn't about talent - it's about outworking. 4. Intellectual humility • Embrace your ignorance. Recognizing what you don't know is the first step to wisdom. • Know your circle of competence. Stay within it, but work relentlessly to expand it. 5. Analytic rigor • Use checklists religiously. They're not exciting, but they prevent stupid mistakes. • Separate value from noise. Price isn't value, activity isn't progress, and size isn't wealth. 6. Allocation • Treat capital allocation as your primary job. It's the difference between good and great investors. • Think in terms of opportunity cost. The best use of money is always measured against the next-best alternative. 7. Patience • Resist the itch to act. Sometimes, the best move is no move at all. • Let compound interest work its magic. Einstein called it the eighth wonder of the world - don't interrupt it unnecessarily. 8. Decisiveness • When the stars align, act with conviction. Hesitation kills opportunities. • Be contrarian when it counts. Fear when others are greedy, and get greedy when they're fearful. 9. Change • Embrace complexity and change. The world doesn't care about your preferences. • Challenge your cherished ideas regularly. Sacred cows make the best burgers. 10. Focus • Keep it simple. Remember what you set out to do in the first place. • Guard your reputation like a hawk. It takes a lifetime to build and a moment to lose. Source: Poor Charlie's Almanack What would you add?

With 20 years of transaction advisory expertise and experience in driving growth through M&A, fundraising, and sustainable investments, here are my rules for wise investing: 1️⃣ Understand the Business, Not Just the Numbers “Great investments start with understanding the core business model, its growth potential, and market positioning.” Look beyond financials and assess the underlying business’s potential for value creation. 2️⃣ Invest with a Long-Term Mindset "Success in investing is about patience, not timing." Focus on businesses that can weather market cycles and deliver sustainable value over the long term. 3️⃣ Focus on Sustainable Growth “Short-term gains are tempting, but long-term growth through sustainable business practices builds wealth.” Prioritize companies with strong ESG practices and long-term growth strategies. 4️⃣ Leverage Industry Expertise “Invest where you have deep knowledge or insights. Industry expertise allows you to spot opportunities others miss.” Invest in sectors where you can leverage your insights, ensuring a competitive edge. 5️⃣ Diversification is Not the Same as Spreading Yourself Thin “Diversifying means allocating smartly, not spreading yourself across dozens of sectors." Balance your portfolio with a focus on high-conviction, high-growth sectors. 6️⃣ Be Disciplined, Not Emotional “Markets will challenge your patience. Stick to your strategy and remain calm through volatility.” Avoid emotional decision-making during market fluctuations; focus on fundamentals. 7️⃣ Value Over Hype “Chasing trends often leads to losses. Invest in value that others may overlook.” Don’t follow the herd—look for opportunities that align with strong business fundamentals, not market sentiment. 8️⃣ Look for Strong Leadership “Behind every successful company is a visionary, ethical leader who steers it toward growth.” Invest in businesses led by people who have a clear vision and a proven track record. 9️⃣ Stay Committed, But Adapt “Commit to your investments, but stay open to evolving strategies as markets shift.” Be willing to adapt your approach while staying true to your core investment philosophy. 🔟 Never Stop Learning “Investing is a lifelong journey of learning—what worked yesterday may not work tomorrow.” Continuously educate yourself on market trends, new sectors, and evolving business models. My investment philosophy is rooted in strategic insights, patience, and sustainable practices that drive long-term success in both personal portfolios and large-scale transactions. Which rule resonates most with you? Let’s discuss ⬇️ Enjoyed this? Follow me and our page https://lnkd.in/ghy4R6Zw for more actionable insights. 🚀 #RuleOf10 #10RulesForSuccess #MNAExperts #MergersAndAcquisitions #WarrenBuffett #InvestingWisely #MarketInsights #LeadershipInInvesting #EntrepreneurshipTips #FinanceStrategy

I turned 26 yesterday. If I could share one thing with students and young professionals who want to build a career in finance & investment, it’s this: 𝒅𝒐𝒏’𝒕 𝒘𝒂𝒔𝒕𝒆 𝒕𝒊𝒎𝒆 𝒄𝒉𝒂𝒔𝒊𝒏𝒈 𝒔𝒉𝒐𝒓𝒕𝒄𝒖𝒕𝒔. Here are the 10 lessons I wish someone told me earlier: 1. Learn accounting deeply. Every model, valuation, and deal starts with understanding financial statements. 2. Get comfortable with Excel and PowerPoint. These are your daily tools, not fancy software. 3. Don’t do 10 certifications. Pick 1–2 credible ones (like CFA, FMVA, CBCA) and master them. 4. Internships > online courses. Real-world exposure will teach you faster than any classroom. 5. Build a student portfolio. Practice making valuation models on listed companies, it’s proof of your skills. 6. LinkedIn is your CV on display. Share what you’re learning, even if it feels small. 7. Focus on clarity, not jargon. Employers value candidates who can explain complex things simply. 8. Network with intent. Don’t just connect, start conversations, ask questions, add value. 9. Stay updated. Read markets, reports, and news daily. Being financially literate is non-negotiable. 10. Play the long game. Careers in finance take time to build. Patience compounds like interest. If you’re serious about breaking into finance & investment, drop a comment or DM me with the word FINANCE. Let’s take the first step together.

Sankaran Naren: 11 brilliant lessons learnt over 3 decades 1. Investing is Not a Zero-Mistake World: Mistakes are inevitable. Learn from them to make fewer mistakes over time. 2. The Most Important Decision is Not What to Buy: Recognize that market conditions change. Buying is easy; managing investments over time is hard. 3. Reverse Asset Allocation: Cognitive biases lead us to make poor asset allocation decisions, especially when the market is strong. 4. Identifying Cycles is an Art: Knowing where you are in a market cycle helps in asset allocation and risk management. 5. Use Extremes to Your Benefit: Extremes in the market provide rare opportunities for exceptional returns. 6. Money Can Be Made in Structural Investing: Long-term, structural investing in sectors can yield substantial returns. 7. Part-time Investors Have an Advantage: Not obsessing over your portfolio daily can actually be a benefit. 8. Value Investing: Contrarian Streak + Calculator: Value investing requires a blend of being contrarian and analytical. 9. Right Time to Measure Performance: Don’t measure performance during extreme market conditions. Use long timeframes. 10. Stay Rational in an Irrational Market: Consistent common sense will yield good long-term results. 11. Investing is Not Simply Arithmetic: Themes in the market change. Use temperament to move between them intelligently. https://lnkd.in/dRSQ4Yzc

Most people don’t invest, they just experiment. They keep piling up anything and everything. Stocks, Bitcoin, FDs, tree plantations, mutual funds, index funds, etc. And all without a plan. It might feel like investing, but in reality, it’s just random accumulation.  That’s where most of us go wrong. As a financial expert, I highly recommend structured investing, not scattered. The right approach is to think in BUCKETS. Before choosing an investment, ask yourself three key questions: ✔ Why are you investing? (Financial Goal) ✔ What’s your investment horizon? (Short-term, medium-term, or long-term?) ✔ What’s your risk appetite? (Can you handle market fluctuations?) Once you have clarity, align your investments based on time horizons: 🔹 Short-term (1-3 years): → Stick to safe & liquid options like FDs, liquid funds, and arbitrage funds.  → These preserve capital and offer easy access. 🔹 Medium-term (3-5 years): → Consider balanced mutual funds.  → They provide a mix of stability and moderate growth, making them ideal for mid-term goals. 🔹 Long-term (5+ years): → If you have the time and patience, equities can create wealth.  → But only if you’re in for the long run. I’ve seen many people invest in equity expecting short-term gains while locking up long-term money in FDs. 100 baat ki 1 baat… “Investing isn’t about how many products you own—it’s about how well they serve your goals.” That’s exactly what I shared yesterday at Executive Management Programme for Defence Officers (IIFT, Delhi), where I was invited to conduct a session on Personal Finance Management. Conducting such sessions allows me to guide people in the right direction. If you’d like a similar session at your institution or organization, I’m just a DM away. P.S. Thanks to IIFT Delhi for the invitation! #investment

The key to smart investing is partnering with people who have proven success in specific industries, particularly those areas that initially appear unfamiliar. Whether your interest lies in real estate, technology, healthcare, or specialized fields like dental practices, joining forces with experienced individuals who invest their own money is a strategic move. They have faced tough challenges, handled critical issues, and emerged successfully with valuable insights and profitable outcomes. Imagine evaluating a promising new tech startup. You grasp the general concepts like innovation, user growth, and market potential, but the technical details might seem complex. Partnering with someone who earned their wealth in tech simplifies the complexity, similar to how a real estate expert clearly identifies hidden opportunities in overlooked properties. Aligning yourself with experienced investors provides clear advantages: 1. Reduced Risk: Experts identify risks you might miss. 2. Accelerated Learning: You quickly gain valuable insights from those with proven success. 3. Greater Confidence: Investing alongside seasoned professionals provides assurance and peace of mind. 4. Extensive Network: Successful investors bring strong industry relationships, offering unique access to deals, knowledge, and resources. Even with attractive opportunities, diversification remains crucial. A balanced investment portfolio across multiple sectors reduces vulnerability and ensures stability during market fluctuations. For instance, many knowledgeable investors currently favor recession-resistant assets such as industrial properties, self-storage units, workforce housing, and medical offices. This is prudent given today’s economic conditions. However, sectors like hospitality or retail, currently less favored, may present exceptional opportunities for patient investors during downturns. As the great Warren Buffett quote goes, "Be fearful when others are greedy, and greedy when others are fearful." Market downturns often reveal lucrative possibilities if you remain prepared and proactive. Ultimately, collaborating with individuals who have consistently demonstrated success is not just advisable; it’s crucial. Long-term planning, combined with targeted industry expertise, protects and enhances your wealth over time.