Banyan Tree Advisors

What we do.

Banyan Tree Advisors is a portfolio management company established in 2004, and based in Bangalore and Mumbai, India. We are registered with the Securities and Exchanges Board of India (SEBI), and are subject to its rules and regulations regarding capital requirements, disclosure and auditing norms.

We are value investors. Our objectives for our investors are three-fold: first, to preserve capital, second to beat the risk free rate of return, and third, to beat the equity index rate of return. We try to achieve this by investing for the long term in high quality companies at prices that are at a reasonable discount to their intrinsic value. Here is a quick overview of what we do.

Safety First.

How you can build wealth.

Getting rich or building wealth? At Banyan Tree, we make a distinction between getting ‘rich’, and ‘building wealth’. The first is a relative term, and dependent on how much money your peers have. The second is an objective goal, based on how much capital you would like to possess at a certain point in the future, and can be achieved if properly planned and executed.

How much wealth you will build depends on your income, expenditure, and how well your investments perform. We are here to help you with the last objective – ensuring that your savings become sound, wise investments that will help you become wealthy.

How much is enough?

How we invest your money.

We base our investment decisions on the goals we set for our investors – never lose capital, beat the risk free rate of return, and beat the equity index rate of return, in that order of priority. The first goal, of not losing money, leads to the discipline that is the cornerstone of our investing philosophy.

As value investors, and followers of Benjamin Graham and Warren Buffett, the principles guiding our choice of investments are very simple – buy high quality companies at great prices.  What is a high quality company and what is the right price to pay for it?

Buying the business.

Getting started.

If you have reached this page, we assume that you have read through some of the articles on our website, and like what you have read so far about Banyan Tree. If you are interested in investing with us, there is one important step left. Call us. We would like to meet you. Why is this so important?

The famous value investor Seth Klarman, said, “Just as it is important for an investor to choose his fund manager wisely, similarly the success of a fund manager is critically dependent on the kind of investors he has”. While investing, patience is a great virtue. The stock market is almost impossible to predict over the short term and it is only with a long term orientation that an investor can maximize his returns in the stock market.

It is important that you understand that Banyan Tree is a long term investor, and we pay little attention to the daily flow of positive or negative news about the stock markets that comes from the media. We have been very lucky with the clients we have because they have been patient with us and have thus reaped the rewards of investing in the equity market with a long term orientation. If you believe that there is a good fit between what you desire out of your investments and what we have to offer, do give us a call or send us an email at the addresses and numbers mentioned here.

How does it work?

Once you have agreed to become an investor with Banyan Tree Advisors, we will open a bank account, a demat account and a trading account in your name, and once you transfer funds into the bank account, we start investing. While we take the decisions as to where to invest, and when, most of the actual work of settlement etc., is handled by the custodian.

Since we are looking to buy into exceptional quality companies when they are statistically cheap, it is unlikely that we will invest all the money into equities on Day 1. The great opportunities are far and few, and one needs to be patient and wait for these opportunities. Sometimes it may take over a year to invest all the funds into equities, and at other times it may happen in under 2 months. It all depends on the valuations at which these high quality companies are trading.

Any excess funds normally sit in a fixed deposit or a liquid fund, earning a moderate rate of interest till the right opportunity comes. We have always believed that it is better to earn a moderate rate of return, rather than lose your money. In the parlance of cricket, it is always advisable to leave alone the balls pitching just outside the off stump and swinging away – ideally you should wait for the full toss on the leg stump and make sure you hit it for a six.

We understand that you are busy with your life and you probably do not have the time to invest in figuring out which stock to buy and at what price. We are sure you would rather catch up with a good movie with your family than spend your spare time in tracking stock prices. As long as you are sure your interests are aligned with ours, and we do a good job of investing in the right assets at the right price, you should be able to sleep well.