Disciplined Investing in Mispriced Quality
BD Sterling is our personal long only investment project built on four non negotiables: disciplined capital allocation, structured risk taking, adaptive learning, and aligned stewardship. Our entire net worth is committed to a single account, concentrated in a handful of deeply researched positions. We primarily focus on Dislocated High Quality businesses. These are high quality companies with durable fundamentals that are temporarily mispriced due to short term market inefficiencies and/or misunderstood narratives. Cash is held when opportunities are scarce. We act only on evidence, not noise, and communicate with transparency.
Portfolio Focus
Dislocated Quality Businesses
Our Core Principles
Disciplined Capital Allocation
We allocate capital only when expected long-term compounding outweighs risk. Idle cash is preserved unless it can generate better risk-adjusted returns.
Structured Risk Taking
We embrace concentration but require each position to follow a clear thesis, scenario plan, and exit triggers. We act only on new material evidence, not market noise.
Adaptive Learning
Markets are unforgiving teachers. We acknowledge what we don’t know, invite dissenting analyses, and pivot when new facts emerge. Our youth becomes an advantage only when matched with relentless curiosity and the courage to revise.
Aligned Stewardship
We believe success stems from aligned incentives. With 99% of our net worth in one account, we operate as disciplined and patient stewards, committed to long term value and fully accountable for every decision and outcome.
Frequently Asked Questions
B.D. Sterling an investment project. Dhruv and Bhvan work on refining their investment philosophies and skills while practicing on being good capital allocators. B.D. Sterling started as a school project, but it has continued way past the semester and has had many iterations of B.D. Sterling over time.
B.D. Sterling buys high quality qualities that are simply mispriced. The mispricing can be due to sentiment, change in business model, macro events, corporate actions, legal actions. This incorporates our appreciation for high quality companies that compound at high rate over a long period of time, as well as special situations where a company has the ability to unlock value in a clear horizon. Providing a blend of uncorrelated alpha and taking advantage of the simple science of compounding.
Dhruv and Bhuvan are currently university students. This project was born out of a dorm room.
Learning from the investment titans before us, we have adopted a concentrated portfolio strategy. Most of the model portfolio returns can be accredited to a select few names, and this is where we believe our concentration and energy should be focused on. “I like putting all my eggs into one basket, and then watching that basket very carefully.” - Stanley Druckenmiller
Growth and value are not mutually exclusive. Value is in identifying opportunities where the market fails to reflect the company’s underlying fundamentals and growth potential in the stock price. A higher than market P/E ratio does not disqualify a stock if its growth trajectory significantly surpasses market averages. Growth doesn’t cancel out value, it can be the very reason value exists. In fact, many of the best value opportunities arise when the market underestimates the quality and sustainability of a company’s growth.