Meet the Investor - Abdullah Al Rezwan - MBI Deep Dives

This February, our Z Club alumni had the privilege of meeting Abdullah Al Rezwan, founder of MBI Deep Dives, and gained invaluable insights about his investment and personal philosophy.

This February, Persis, Business Manager at Next Gen Investors Endowment, and Mouli Raj, a Z Club alumni, had a chat with Abdullah Al Rezwan, who founded and authors MBI Deep Dives, the renowned equity research newsletter. They introduced the Z Club to Abdullah, and Mouli Raj took away nuggets of gold from their conversation that we hope to share with you today. Read on to learn more from the incredible mind and experience of Abdullah Al Rezwan!

Read on to learn Mouli's reflections from their conversation:

The conversation Persis and I had recently with Abdullah from MBI Deep Dives was incredible. As a result, I gained many new perspectives on investing and how to approach it with the right mindset. He shared practical, thought-provoking ideas that helped me realize that investing is much more than buying and selling.

Why Do Stocks Move?

One of the first things we discussed was the main reasons stocks move. Abdullah broke it down into three factors:

1. Dividend Yield – The income investors get from dividends.

2. Earnings Growth – How much a company’s profits grow over time.

3. Multiples Re-Rating – When the market changes how it values a stock, often based on outside factors like the economy or sentiment.

The first two are straightforward to analyze, but multiples re-rating is tricky because it’s driven by things we can’t control. Abdullah pointed out that it’s almost impossible to predict when this will happen. For making sound decisions, embracing this uncertainty is more important than chasing short term gains over the next two to three years.

This is especially because while over the long-term, valuation multiples are a function of the growth and competitive advantages a company enjoys, in the short-to-medium term it can be heavily influenced by interest rates and investor sentiment, which might not always be justified.

The Problem with Industry Pressure

Abdullah also shared something that really struck me: most of the investment industry is set up in a way that pushes people to act, even when it might not make sense. Instead of focusing on truly understanding a business, many professionals feel forced to figure out whether to buy or sell just to meet expectations.

This led to an important takeaway: Sometimes, providing a thoughtful perspective on a business can be more valuable than taking action. This is especially true for technology companies, where predicting long-term value is incredibly difficult. A strong opinion backed by research can often matter more than trying to forecast everything perfectly.

The Power of Awareness

One of the biggest realizations we discussed was awareness. Abdullah explained that every investment strategy has its own challenges and trade-offs. Recognizing these doesn’t mean we need to fix or fight them; it’s more about being mindful of how they shape our decisions.

For example, instead of rushing to act because of short-term market tensions, it’s better to step back and focus on understanding the situation fully. This kind of awareness helps investors stay grounded and avoid getting caught up in unnecessary noise.

For example, take two hedge funds that invest in Indian public markets, each using a different approach, yet both achieving great success.

Nalanda Capital, run by Pulak Prasad (author of What I Learned About Investing from Darwin), follows a patient, long-term strategy. They invest in businesses and hold onto them for 5 to 7 years or longer, rarely selling. Their approach relies on deep conviction, and this disciplined method has consistently put them among the best-performing hedge funds.

In contrast, Sage One, led by Samit Vartak, takes a more dynamic approach. They focus on companies that are expected to double their earnings within 2 to 3 years. This strategy is faster-paced and growth-driven, and it has also produced outstanding results since the fund began.

Both of them would be aware of their shortcomings in their investing approach and would be mindful of them.

Research and Memo Writing

One of the most practical tips Abdullah gave was about memo writing. He said we shouldn’t treat it like a chore or just another task to complete. Instead, it’s an opportunity to dive deep into research, which is where the real insights come from.

Abdullah pointed out that great investors like Warren Buffett don’t think of investing as just buying or selling stocks. They see it as a way to understand businesses deeply and think long-term. This mindset makes all the difference.

Staying Consistent

Finally, Abdullah emphasized the importance of consistency. In investing, some so many people are fully committed to research and analysis. If we don’t stay focused and consistent, it’s easy to fall behind.

His advice was simple: keep writing, keep researching, and keep improving. Even if progress feels slow at first, sticking with it will pay off in the long run.

Final Thoughts

This conversation with Abdullah left me with a lot to think about. It reminded me that investing isn’t just about chasing returns or timing the market. It’s about building a thoughtful approach, staying aware of the challenges, and committing to continuous learning.

What stood out the most was how Abdullah views investing as more than just a profession it’s a way of life. His words have inspired me to stay curious, stay consistent, and never stop learning.

Thank you Abdullah for taking time out of your schedule to meet the members of the Z Club and sharing your incredible experience and insights! We look forward to meeting you again!