Investing From Darwin

A framework for permanent ownership of high-quality businesses, derived from Pulak Prasad's What I Learned About Investing from Darwin (2023). Nalanda Capital's investment philosophy — managing $5B+ in Indian equities with 20%+ annualized returns — distilled into five evolutionary lenses.

Core Philosophy

"We want to be permanent owners of high-quality businesses."

Three pillars, mirroring Darwinian survival strategy:

1. Avoid Big Risks — be a great rejector (Section I)
2. Buy High Quality at a Fair Price — use ROCE + robustness + honest signals (Section II)
3. Don't Be Lazy — Be Very Lazy — buy rarely, hold forever (Section III)

Dimension 1: Avoid Big Risks (The Great Rejector)

Evolutionary parallel: Animals minimize Type I errors (errors of commission) at the cost of Type II errors (errors of omission). Deer flee when uncertain. Cheetahs skip prey they can't safely kill.