Amit Porfolio XIRR 25 % 9 years

With current momentum market situation. Some lazy stocks can be exchanged with industry momentum at this moment. It can increase your cagr by 5% .

But since this is not your style. Then I would have taken position on Interglobe aviation (example) in your place in exchange of 4-5 stocks having allocation less than 1%.

Thanks, Sunil for your suggestion. Stock price movement does not matter but yes business performance is lazy then I should switch to much better opportunities at the right price.

I have been thinking about this for a very long time and then Warren Buffet’s two letters focused on the Secret sauce of investing you find here https://twitter.com/amitverma21/status/1750949872688037938

Then he talks about how only holding one among many can make you and your generation very rich https://twitter.com/amitverma21/status/1750949872688037938

The reason most rich families are business people as they are permanent holders of good businesses not trading in and out.

Give example of Tata Exlsi did some modeling on xls https://twitter.com/amitverma21/status/1751249666967048623

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Can you share your latest additions?or the businesses you are eyeing?

I haven’t made any significant changes, but I’ve removed JK Bank and HDFC Bank and added CSB Bank (with a 1% tracking position). There are many opportunities in the banking and finance sectors. I’m also keeping an eye on the insurance sector. Since valuations are high in most areas, you need to be very careful, especially when it comes to cheap options.

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Hi Amit,

Thank you for the boost to hold stocks for the long term. I have been investing since August 2020 and I’ve been doing decently with my investments. My only question is: how did you calculate the CAGR/XIRR over the years? It’s actually quite difficult for someone like me to calculate it due to high churn.

I typically trim and adjust my allocations based on the results and management guidance. If a business continues to show strong performance, I increase my allocation even if i have to buy at ATH i do not shy away. Conversely, if there are near- to medium-term challenges, I reduce or exit the position based on my understanding.

This makes it difficult to calculate the CAGR/XIRR. Is there a way for me to calculate it through a tool/app, or should I not worry about the CAGR as long as I’m doing well with my investments?

Any insights would be helpful. Thanks!

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Can u pls let me know what in insurance sector you are liking other than it has not moved much over last few years like other private banks etc. Valuations have softened no doubt but other than this fact, do you like anything else?

Also which part of insurance are you liking…Life or health or general?

Thanks!

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The insurance sector, similar to banking, lacks a competitive advantage. It operates as a commodity business, where management plays a significantly more crucial role compared to brand recognition. In the banking and financial services (BFSI) industry, what you don’t do is more important than what you do. While everyone can increase revenue, only a few achieve long-term ROEs above 15%.

My exposure to the insurance sector has primarily been in the United States, with investments in Berkshire Hathaway, Markel, and Fairfax Financials. I acquired these companies at relatively low prices and have excellent capital allocators with conservative management.

In contrast, the Indian insurance valuation is high and have not seen yet great capital allocators of Insurance Float. However, there is a positive aspect: the insurance industry is projected to grow at a double-digit rate. I am watching GoDigit ( i have indirect holding through Fairfax) and Star Health.

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Don’t worry about calculating CAGR or XIRR only, but in the long term, you should check if you are able to beat the best of mutual funds; else, you can outsource this to them. I have maintained all transactions in a Google sheet; you can check videos on YouTube on how to create sheet. I did with various iterations or just use Yahoo finance app add all transactions.

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Thank you for your response. So far, performing better than the index and most mutual funds, and I hope we will continue to do so with our bottoms-up approach.

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@HighCAGR ,
There is a readymade formula in Excel of XIRR.
You have to just put dates and your transaction amount with +ve or -ve sign, whether you add or withdraw the money.