drgrudge
Confused with November return of 10% when most of your scripts were down 10% due to demon.
It has to be noted that the CAS valuations include my investments too. I had invested heavily during demonetisation time.
- How is your portfolio looking right now?
- Still holding Eicher at 30%?
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 Iām 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.
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@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.
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 Iāve money. Iāve about four decades of investing/active life in front of me. Iām 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 donāt 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 Iāve to buy only one share. Not to say I never time the market, but I donāt aim to invest looking at the market levels. However, bring on the ācrashes!ā 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. 
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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.
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 donāt 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:
- Negative news and perception about on ICICI group like Videocon scam, ICICI Pru AMC buying ISEC on last day, etc. Iām wanted to be comfortable with the management who would be at helm.
- 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.
- 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.
- 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.
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@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
90% of the time I buy when Iāve money. If any of the stocks which I hold falls, Iāll 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 donāt churn my PF much and buy as and when Iāve surplus money.
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Very nice to read through the thread.
Do you mind sharing your latest portfolio?
The PF as it stands today:
Bajaj Finance - 29%
Eicher Motors - 10%
Britannia - 12%
Nestle - 5%
HDFC AMC - 11%
HDFC Life - 8%
Page Industries - 8%
Avenue Supermarts - 6%
3M India - 6%
Bandhan Bank - 4% (from Gruh holdings alone)
Titan - 2%
Not sold any shares from any of the businesses I currently own.
Thoughts on stock allocation
Iām not a fan of maintaining multiple PFs (like core and satellite; small allocation for trading bets, etc) and am fairly comfortable in holding a concentrated PF although I wish to diversify a bit more (both asset allocation as well as number of stocks/sectors) in the long run once my PF size increases substantially from here. Although the PF size is not big enough, my monthly salary is less than 1% of current PF size and I find it difficult to ramp up stock allocation in PF. For example, now I find it tough to ramp up allocation to Titan and the increasing stock price also does not help. There are times where Iāve sold stocks (Crisil, Alembic Pharma, etc.) because I was not able to increase allocation to my desired level and increasing allocation to existing businesses made more sense.
On the other hand I donāt mind any stock having high allocation in the PF like Bajaj Finance at 29% now. Eicher Motors was once 36% of my PF but has come down now though Iāve not sold a single share (in fact invested more) but because other stocks have done well and last couple of years arenāt good for auto sector. In the medium/short term, not all stocks perform similarly at the same time and individual stock allocation can be managed at our comfortable level in the long run. It all matter how well you can sleep at night having 35+% allocation to a single stock. I personally am not comfortable with 1-3% allocation compared to that of a 35+% allocation.
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Love your strategy. I have started to follow something similar in the last couple of years.
Though my performance isnāt anywhere close to yours as I have made a lot of mistakes during my close to ~8 years of direct investing in equities. Over this 8 year period, my stock pf is compounding at ~22% CAGR.
Itāll be great to know your latest holdings and how your pf has changed since your last post. Cheers.
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The Latest PF:
Bajaj Finance - 30%
Nestle - 15%
Britannia - 11%
Avenue Supermarts - 7%
3M India - 11%
Honeywell Automation - 8%
Abbott India - 6%
HDFC AMC - 10%
HDFC LIFE - 2%
Burger King - 1%
I feel there is no point in 1 or 2% allocations. Have decided to increase allocation to HDFC Life but for Burger King either I will scale up or allocate the money to other stocks.
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Hiā¦great to know your track record and impressed with your conviction. Some queries, if you could helpā¦
- you had mentioned that you wanted to diversify in some more sectors , but still stocks are 10 as before.
- It seems there is not a single stock from chemical sector, whereas when you started thread, from then onwards chemical sector is booming with china+1 etc.
- Indian market, including Nifty is having very high weightage to IT, but you dont have any IT stock, but sector has performed secularly in last 2 decade.
- Wondering what must be your XIRR returns currently? And how much you are into mutual funds portfolio. Also if possible, pls share your mutual fund portfolio.
Thanks un advance
Before I answer, my latest PF: (no major change so not sure if this adds value)
Bajaj Finance - 34%
Nestle - 16%
Britannia - 10%
Avenue Supermarts - 10%
3M India - 8%
Honeywell Automation - 7%
Abbott India - 7%
HDFC AMC - 6%
Nykaa - 1% (currently buying and would ramp up stake)
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I have even concentrated to 9 stocks only. Iām comfortable with this and also we have a significant PF of my spouse (more consumption heavy) so not looking to diversify for diversification sake.
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Do not understand chemical sector at all.
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Donāt understand IT sector too however we hold TCS in my spouse PF.
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Honestly have not calculated. I guess it should be about 18% or so.
I donāt have any MF at all. For child PF, we have PPFAS Flexi Cap and ICICI Pru Balanced Advantage only. Also have NPS (75% E 25% G) which is about 20% of my PF size.
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Good to see a no nonsense concentrated portfolio with solid companies! Would be nice if you can share major holdings of your spouse portfolio also as that would give better perspective to your overall risk management and portfolioā¦
@Investor_No_1 , my spouse PF:
Page Industries - 25%
Procter & Gamble Hygiene & Health Care - 18%
Avenue Supermarts - 14%
Titan - 9%
Pidilite - 6%
Hindustan Unilever - 6%
HDFC Bank - 5%
TCS - 5%
Eicher Motors - 3%
HDFC Life - 3%
Dabur - 2%
Jubilant Foodworks - 1%
Tata Consumer - 1%
ICICI Bank - 1%
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