"There is no such thing as a worry-free investment. The trick is to separate the valid worries from the idle worries, and then check the worries against the facts." –Peter Lynch

The legendary investor Peter Lynch had a peculiar style of investing and one of his favourite category of stocks was Proxies. The whole idea of proxies is so fascinating that the target industry’s direct participant may be a mediocre business whereas the one serving as its proxy may be a terrific business. However, when a business’ fortunes are tied to the fortunes of an industry which has an element of cyclicality built in, it becomes an important factor to keep a close watch on the business trajectory of the whole industry.

The business we will discuss is CAMS–Computer Age Management Services Ltd. We'll take a close look at the Sources of Revenues, Competitive Advantages, Sources of Risk, Thesis-Antithesis and Valuations. There are a few peculiar characteristics in the CAMS business that make it durable as it is functions as a Secretary of Mutual Funds that have been here and will be here for the long haul and some make it fragile as the Growth in the AUM of AMCs will outpace the Growth in the Fees for CAMS. This episode will help get a complete understanding of CAMS’s business model and where it could be headed.

This was a much sought after business analysis from all of you and we really gave it our all to bring you a detailed episode. We hope to keep adding value to your investing journey. 🙏