Investing Philosophy

At PrudentParrot, we focus on discovering unknown and under-researched small companies—businesses that are yet to be in the mainstream spotlight. Our goal is to identify these opportunities before they gain widespread attention, which often involves taking on risks and, at times, paying seemingly high valuations for future potential.

Why Small Companies?

We have built our investment universe around companies with a market capitalization below ₹5000 Cr. We believe this is where asymmetrical wealth creation happens—you need to buy when the company is still small.

The Research-Driven Approach

Since these companies are under-researched, we commit to thorough due diligence, uncovering every publicly available piece of information before making an investment decision. We prioritize business fundamentals over short-term price movements.

Patience Over Instant Gratification

Expecting immediate stock price appreciation after discovering a company is unrealistic. Businesses take time to grow, and eventually, stock prices reflect that growth. Instead of watching prices daily, we urge investors to track the financials and business progress.

When to Hold, When to Exit?

As long as a company’s fundamentals remain intact, we remain invested. But when fundamentals deteriorate, and only hope remains, we believe in cutting losses rather than holding onto blind optimism.

The Core Principle: Long-Term Compounding

We aren’t chasing get-rich-quick schemes. Our approach is centered around long-term compounding, allowing businesses to scale and deliver sustainable wealth creation over time.

At PrudentParrot, we don’t follow the crowd—we find hidden gems before the crowd arrives. 🚀