Shankar Nath’s GARP Strategy fetched 115%

GARP (Growth at a Reasonable Price) investing is a strategy that sits between value investing and growth investing, aiming to balance growth potential with reasonable valuation metrics. Popularized by legendary investor Peter Lynch, GARP seeks to identify companies where growth is undervalued rather than simply searching for cheap stocks. In this article, I will revisit the GARP framework put forth by one of my favorite financial educator and YouTuber, Shankar Nath. He has done an excellent job of analyzing multiple frameworks already in vogue and has come forth with his own version, which, based on his back test, had yielded a whopping 115% return per year and managed to beat all other methodology. I have built an automated python screen that will download the eligible stocks based on his framework and am hoping it will be of some use to you! In the video below, I also share my current profit/loss position of a small portfolio that I built using this method and promise to keep you posted on the progress every quarter, as part of my re-balancing ritual!

by KV