ETMarkets PMS Talk: Identifying 'Compounding Machines': Sundaram’s strategy for high growth stocks – The Economic Times

Sundaram Asset Management recently held a session as part of the ETMarkets PMS Talk series, where they discussed their strategy for identifying ‘compounding machines’ in the stock market. These compounding machines are essentially high growth stocks that have the potential to consistently deliver strong returns over the long term.

The key to identifying these compounding machines lies in understanding the underlying fundamentals of the companies in question. Sundaram’s approach involves thorough research and analysis of various factors such as the company’s business model, competitive positioning, financial performance, and growth prospects.

By focusing on companies with strong fundamentals and sustainable competitive advantages, Sundaram aims to build a portfolio of high growth stocks that can generate significant wealth for investors over time. This strategy is based on the principle of compounding, where the returns generated from these stocks are reinvested to accelerate wealth creation.

Overall, Sundaram’s approach to identifying compounding machines is grounded in a disciplined and research-driven investment process. By focusing on high quality companies with strong growth potential, they aim to deliver superior returns for their clients over the long term.