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Chatur Investment Framework by Zakaria Khan KhanZ Invest

What is Chatur Framework?

Chatur Framework is a 5 step investment framework made by Zakaria Khan, Founder of KhanZ Invest. It is based on value investment principles.

The 5 steps of Chatur Framework are designed to simplify the process of finding good quality stocks.

The Chatur Framework aims to help you better control your investment risks and at the same time generate good long term returns.

What are the principles of Chatur Framework?

Chatur Framework is based on value investing principles. In a nutshell, value investing means we strictly evaluate the quantitative matrixes of the business and calculate the intrinsic value of a business and buy its stocks at a cheaper price. Buying stocks cheaper than their intrinsic value is known as the margin of safety.

Our investing framework is not limited to quantitative matrixes, we equally value qualitative measures of a business. Step 4 & Step 5 of the Chatur Investing Framework looks into the qualitative measures of the business.

5 Steps of the Chatur Framework

Superior Finance

The company must generate strong positive cashflow, good growth, low debt & high profitability

History of Profit Sharing

The company must have a history sharing profits with its shareholders.

Price below Intrinsic Value

The current stock price should be lower than the Intrinsic Value of the underlying business

Long-term Business need

The company must have a strong market presence & the products must have long term future prospects

Asymmetric Risk Reward Ratio

Make a bull and bear case and the investment must have more upside than the downside