The Learning Curve - drgrudge Portfolio


(PRSAUDAG) #41

drgrudge
Confused with November return of 10% when most of your scripts were down 10% due to demon.


#42

It has to be noted that the CAS valuations include my investments too. I had invested heavily during demonetisation time.


(Yatharth) #43
  1. How is your portfolio looking right now?
  2. Still holding Eicher at 30%?

#44

My latest PF:

Bajaj Finance - 25%
Eicher Motors - 22%
Britannia - 14%
Piramal Enterprises - 11%
Thyrocare - 6%
Symphony - 6%
GRUH - 6%
ICICI Pru Life - 5%
HDFC Life - 3%
Wonderla Holidays - 4%

The big change is that I’m out of Pharma (other than PEL), Participated in rights issue of PEL and increased allocation to Bajaj Finance. No existing stock position was trimmed.

The last time I did a fresh investment to Eicher was about 1.5 years back and other stocks did well so it seems that allocation has come down.


(PrinceVegeta) #45

@drgrudge sir, would love to hear an update on this beautiful thread especially in these testing times.
Bajaj Finance and Eicher have taken quite a beating on the street although the business still remains strong.


#46

An update on my PF:

Bajaj Finance - 28%
Eicher Motors - 16%
Britannia - 14%
Piramal Enterprises - 10%
HDFC Life - 8%
HDFC AMC - 7%
Thyrocare - 6%
GRUH - 5%
Avenue Supermarts - 4%
Page Industries - 3%

Not sold any shares from any of the businesses I currently own.

Not thinking like a fund manager
My strategy is to keep things simple. Not think like fund managers and worry over valuations, macro, beating or timing the market, etc. I invest when I’ve money. I’ve about four decades of investing/active life in front of me. I’m not going to be hazed by some fund manager selling a CP for a discount when some (quasi)PSU NBFC had defaulted. If I try to be smart and hold cash, then invariably I spend the money and more often than not frivolously.

I feel living below our means and enjoying the process (if you don’t then better investing through MFs or PMS route) works well. This would take care of 50% of the returns you may generate. We have to identify good/great business and study if it makes sense to invest. I invest in businesses which I understand fairly well. I invest aggressively, not in terms of the quantum of money but putting every rupee to work even if I’ve to buy only one share. Not to say I never time the market, but I don’t aim to invest looking at the market levels. However, bring on the “crashes!” Pay day is at most 30 days away and I can take interest free/ subsidized interest loan from our office. If it has to come to that level, we can also break our FD/PPF and invest. :smiley:


(biju john) #47

Any reason to sell ICICIPRU, is there any problem with their business, thesis was that this was the undervalued one and decent also on metrics.


#48

I sold ICICI Pru Life since I wanted to hold only one life insurer and I felt HDFC Life is a better business than ICICI Pru Life. I don’t think that even a scrap will have some value and buying at a lower valuation is OK than buying pearls but seemingly overpriced. There were other reasons like:

  1. Negative news and perception about on ICICI group like Videocon scam, ICICI Pru AMC buying ISEC on last day, etc. I’m wanted to be comfortable with the management who would be at helm.
  2. If we see the last one year or so, the growth is lower for ICICI for various reasons but not limited to equity markets being weak (about 80% of NBP are ULIPs), change of guard, etc.
  3. Felt HDFC Life was more agile and brought innovation products like health indemnity plan (along with Apollo Munich), Deferred Annuity policy, Click 2 Protect 3D Plus, etc.
  4. Going forward, ICICI has indicated that they may not pay any special dividend. While this is not bad per se but the days of 2% dividend yield are over.

(PrinceVegeta) #49

@drgrudge wanted to know your strategy for buying high conviction stocks.
For e.g.- Bajaj Finanace has highest weightage in your portfolio. Do you keep adding to your position when the opportunity comes?

Or do you do an SIP by buying continuously irrespective of price.

Thanks


#50

90% of the time I buy when I’ve money. If any of the stocks which I hold falls, I’ll buy more of that, switch to higher conviction stocks (like move from Symphony to Page) or take interest free/ subsidized interest loan from our office. But mostly I don’t churn my PF much and buy as and when I’ve surplus money.