Immense gratitude for all of you on creating such a high quality community engaging in conversations that matter and impact the outcome of an invetsment idea rather than doing an academic discussion and creating hypothesis. I have been a long time reader of this wonderful forum and silently absorbing all the knowledge and methods of research, i have achieved some degree of understanding to share my thoughts and engage in meaningful conversations. Just like most of us, i started small with mutual fund, then scaled up to deploy significant part of my savings into it; then moving to direct investments slowly and steadily to building a portfolio of meaningful size and expecting financial non reliance on my day job by 2026
There is only one piece of advice i would give to young people entering their earning years, even if you are deeply interested in investing and have confidence of making it big in life through investment, pls treat your jobs with equal importance and try to grow in them and endevaour to increase your earnings potential, it will not only help you with good capital to work with but also deter you from taking huge risks.
I tested many investment philosophy and more or less figured out what works with my thought process and with what i can peacefully sleep at night. I invest largely in mid and small caps. The portfolio is into 2 sub category:
1) Long term compounders
Companies with good visibility of future earnings and comparatively lesser volatility with expected returns of 18-20%.
Investing framework is high quality earning ( high roce, stable margins etc.) with reasonable growth and valuation, long seemingly secular growth trends in industry with tailwinds.
2) Emerging Ideas
These are few bets where the return expectations are multifold with high degree of risk and volatility, hence expectation is to filter ideas which have potential for 25% CAGR in next 4-5 years
Investment philosphy is large outsized outcomes through large capex, new product line, margin expansion, deep value, special situation etc. Looking for topline growth X margin expansion X valuation rerating
These are companies where either i have done the research but waiting for valuation to correct or any specific trigger or waiting for performance improvement visibility.
My asset allocation is 55-65% in equity, 25-30% in fixed income and remaining in cash depending on market cycle and valuation of companies i hold or intend to buy.
Below is my current portfolio, it has undergone significant change in last 2 years.
- LTI : 11%
- Laurus : 6%
- Metropolis : 7%
- Affle : 8%
- Route : 7%
- Prince Pipes : 7%
- Intellect Design : 6%
- Mastek : 6%
- Saregama : 5%
- Tips : 6%
- Neogen : 10%
- Infobeans : 10%
- Arvind Fashion : 9%
Allocation is basis current value, some have increased multiple times from buying price. Invested part of allocation into Equitas holding and intend to buy more post Q3 result if all seems in line.
Reading more on Rategain and Nykaa. Positive on MMI and Data Pattern, but limited information available, will wait for few quarter results, concalls and research analyst reports to have sufficient data points.
Below is a list of people i would like to thank on Vpickr for showing the light and maybe meet some day to personally thank
@Tar : Concentrated bets on high conviction
@sahil_vi : Research and some more research
@Worldlywiseinvestors : Crazy dedication for SOIC
@Vivek_6954 : Your journey and thankfully its documentation is such an inspiration and a guide book
My Favs & Inspiration
Fav Podcast: https://www.youtube.com/c/TheInvestorsPodcastNetwork
Fav Indian Investor : Sumeet Nagar (Malabar), Sunil Singhania (Abakkus) & Neil Bahal (Negen)
Fav International Investor : Howard Marks
Fav Teacher : Mohnish Pabrai & Richard Feynman
Life Guide : Warren Buffet
Inspiration : Nikola Tesla & Dr. APJ Kalam
I intend to be more proactive on VP and twitter (https://twitter.com/akshatinvestor).
Look forward to feedback on my thought process or companies !