We discuss the significance of understanding economic cycles for investment strategies, particularly highlighting the current inflationary cycle in India and globally. Successful portfolio construction involves three main decisions: selecting companies, determining exposure, and managing cash deployment. An important aspect of identifying a strong cycle is the accretive effect of RoE on market leaders in the cycle. In fact, one can extend the argument to say that a strong cycle is one where more than 75% of the companies in the sector show an expanding RoE. Our positioning as a fund has revolves around this core philosophy and aligning investments with the right economic cycle is crucial for achieving superior portfolio performance.