I V Subramaniam, Director & CIO of Quantum Advisors shares with us his first personal investment experience, his entry into the financial world and more
What is the most exciting thing about your job?
Stories fuel the imagination and storytelling is an art I cherish and admire. As an investment manager I am able to follow different companies which have their own stories to tell. This is very exciting to me.
Additionally at Quantum, the way we approach our business truly drives me. The entire experience is quite exhilarating; which includes building a business based on strong ethics, being a part of retail money management and yet staying away from the opaque distribution process, creating a research process and training new research analysts and putting together a team of like-minded professionals who believe in a philosophy.
Just writing about our business is so exciting that I have goose bumps as I write.
Tell us what it feels to be responsible for managing other people’s money.
I feel happy about it. I recognize the fact that this is a huge responsibility and I respect its fiduciary nature. In some sense people are investing in us as fund managers. Thus, we need to make sensible promises and focus on delivering those promises.
Did you always want to manage money? If not a fund manager, you would have been.
It might sound clichéd, but yes, I have always wanted to manage money. However, if I was not a fund manager I would have liked to be either a storyteller and create fascinating stories or have a role that would somehow contribute towards motivating others to follow their dreams.
Tell us about your first investment.
My first investment was “Ind Suzuki” (now TVS motors). I remember using the money earned by working in a company immediately after my degree college days to buy this stock. I had seen their motorbikes in a showroom near my house and felt that they would do well as compared to Bajaj which was selling scooters.
It was an amazing feeling when my investment returned a 100% profit. (However, years later I regretted realizing this profit because if I had held on longer to it, I could have made a greater than 1000% profit)
I have learned to visualize about products and companies that could shape India in the next two to three decades. It was early to mid 80’s when I visualized what India could look like in the next two to three decades and find appropriate investment avenues. However, I did not invest then as I did not have the required capital.
But I have struggled with learning how to hold on to investments and have repeatedly sold too early, even in later years.
What role does luck play in investing?
Like everything else in life, luck may play a role. However, we have to make investment decisions based on factors other than luck and not simply leave everything to chance.
What are the qualities that you feel a good Fund Manager should have?
According to me, a good fund manager is one who has a stable thought process and is clear in his approach to life. He has to be curious and should have the desire to dig deeper to completely understand an investment. A good fund manager has common sense and most importantly, he should work not for the money but for the joy that “investing well” gives.
Share with us the best advice you have ever received.
Good advice is always hard to come by and there are some simple rules that stay etched forever. Here are a few words of wisdom that have guided many of my decisions over the years:
Stay away from “noise”
Have a safe haven asset for your investments: Invest in “Gold”
Follow the traditional definition of “Income – Savings = Expenditure” (vis-à-vis the more popular definition: Income – Expenditure =Savings)
Diversify your investments sensibly
If you were allowed to spend a day with someone from the world of investments/business of your choice who would give you wisdom and perspective, who would it be? Why?
I don’t mean to sound pretentious but I really enjoy the company of my colleague Ajit Dayal. He has immense knowledge about the world of investments and his interaction with a wide variety of people has given him a very good perspective of various issues, both investment and non investment related. I admire his enthusiasm and his ability to readily share his knowledge with a smile.
The other people I would like to spend a day with would be:
John Bogle, who was instrumental in making Vanguard an international mutual fund giant without following opaque distribution channels; Charles Munger and Seth Klarman for their investment advice; and Amitabh Bachchan for his business sense (he bounced from bankruptcy).
Your favorite book
Jonathan Livingston Seagull by Richard Bach
How do you unwind?
Long walks and dreaming while walking, reading intelligent books, and listening to music always help me relax after a long day.
Over the next 10 years, the most exciting country to invest in would be
Without a doubt - India!
Advice for budding fund managers.
Start with an investment process and focus on the long term. It takes years to differentiate between noise and information, but it’s important to learn how to distinguish between the two.
Also remember:
Do not leverage.
Do not be greedy. If you avoid being greedy, you will avoid being scared.
Focus on what you know.
Cultivate the habit of questioning everything. An inquisitive research analyst makes a good fund manager.
Be aware of yourself- your weakness and strengths.
