Origin of CCP Investing: Coffee can investing aligns with the principles of long-term wealth creation and relies on the belief that investing in quality companies will generate substantial returns over time. It is a long-term investment strategy focused on buying high-quality stocks and holding them for an extended period, without actively trading or attempting to time the market.
The term is inspired by the idea of placing investments in a “coffee can”, metaphorically sealing them away, and avoiding any short-term distractions or market fluctuations. Does it work in practice? Our framework based, last thirteen equally weighted CCPs have outperformed Nifty/BSE200 by ~8% per annum (median basis) over their 10-year holding period.
What is the framework?
While different CCP frameworks exist, our framework focuses on the sustainability of strong sales growth (rolling 3-yr CAGR ≥10%)…