Businesses with 'MOAT'. Investment Strategy & Discussions

Hello Investors,

Thank you all for making ‘Value picker forum’ an open, vibrant & trust worthy place for fellow investors.

I am writing this post to make this as ‘Talking walls’ of my investment journey now and for future. The Aim is to have this forum as an investment diary and learn from you all with your comments and inputs. Also, will try to add value to the forum wherever possible.

About myself and brief history
I am an Electrical Engineer working as Sr. Technical Officer in a 'Scientific Research Institute’ of Repute. I tried wetting my feet in stock market for a brief period in 2007-08 without knowing the depth, currents and waves of direct equity investing. Being in middle class, redeemed investments in red to fulfill family responsibilities like home and other basic amenities. Restarted my equity investment journey in 2020, this time with lot of preparations to sail for rest of life journey. Please don’t think am old, I am 35 with a working spouse and children as I write this.

My Investment Theme: We (Couple) are long term investors (With at-least 5-10 years Time horizon). Our Aim is to accrue long term wealth by investing in high quality Businesses with visible high growth trajectories; in sectors with strong future prospects. We strongly believe that India’s high growth story (GDP growth of 8-10%) to continue at-least over next 3 decades; because of favorable demographics and structural changes and reforms in progress. We have our 1) Retirement corpus planned with the help of NPS (Govt Bonds + equity) with Moderate to No risk. 2) Also have Real estate as core Asset cum investment with minimum downside risk; though low potential appreciation at present market condition 3) We are here to invest in Businesses for best capital appreciation possible over long periods of time, where compound interest works in favor of our financial plans like Short-close some borrowings, Children’s education, second home, foreign Tour, second car, business etc.

My investment approach:

  1. I would call my approach as Growth at reasonable price as of now. In this method, I can visualize future prospects to hold on to businesses. Value bets are not giving much to hold on for me as of now.
  2. I would like to maintain concentrated portfolio for ease of tracking (10 - 15 businesses) and for higher returns. I believe only concentrated portfolio can give higher returns.
  3. I am ready to wait through few quarters of under performance, if prospects remain unhindered.

More details are provided in ‘My Business Investment Plan & Learnings till date’

My present portfolio with investment rationale is given below, seeking advice of learned & experienced investors here.

My Business Investment Plan & Learnings till date:

Entry and Asset allocation:

  1. We are investors in Growth companies with common sense approach, so keep looking for Quality business opportunities with MOAT in trending sectors with huge runway for growth and reinvestment.
  2. Once you have new idea (Business), check its credentials with ‘Buy’ check list to assess its suitability.
  3. If ‘Buy’ check list gives marks above 70, then buy tracking quantity. say 10% of intended position size and increase it in shortest time possible as it goes up.
  4. We will have 10 to 15 diversified business positions at any given moment of investment journey for ease of tracking the businesses.
  5. Our ideal position size would be 3 -15% of Portfolio size. (i.e for 15 Lakh portfolio position size shall be between 1 to 1.5 Lakhs)
  6. Size positions based on maturity of business model and upside possible. Higher the maturity and upside possible higher the allocation.

Review & Re-balancing

  1. Review of businesses will be done once in a quarter with the help of Quarterly results, Earnings calls / Transcripts and Institutional research reports wherever available.
  2. If there is consistent and improved performance in line with expectations then Hold positions, if there are positive learnings-increase if possible.
  3. If there is moderation of performance because of market conditions hold. If the performance moderates for long time and industry/company structure/prospects not in line with the theme of ‘Buy’, then reduce/exit.
  4. Study businesses in portfolio as much as possible, building convictions in your multibaggers can only make portfolio better over time.
  5. Check your fast growers and slow compounds for re-balancing quarterly / Half yearly. Add to High conviction fast growers and reduce from low conviction draggers
  6. Manage liquidity risk through lower position sizes, i.e book lower position stocks with low conviction first for liquidity.
  7. When new facts require us to change our mind and we are wrong.
  8. Track Capital allocation decisions of surplus cash flow of company, is it in Healthy zone for business

Profit & Loss booking

  1. Book profits / Loss always in Low conviction businesses first.
  2. Book Profit when needed in businesses whose runway for growth and reinvestment is not clear and not visible.
  3. Book Partial profit in businesses (Not in Core long term portfolio) when monthly RSI (14) is above 77.
  4. When new facts require us to change our mind and we are wrong.
  5. When we believe there is euphoria (Intense excitement) in valuations, Exit/trim during euphoria – price at least 30% above our estimate of fair value.
  6. Ability to re-allocate capital to a significantly better opportunity


  1. Avoid getting tempted by momentum and positional tips by friends & others for short term gains. (Once in a while for joy of trading can be done with high conviction bets only)
  2. Avoid buying Cyclical s (Metals, commodities…etc) if buying then do ensure it is in UP cycle and Business PE is in high double digits because of suppressed past earnings and ‘Sell’ when PEs are in low single digits with prolonged higher earnings.`

Purpose of this thread

  1. Investment is a journey, seeking your directions to follow the right path to reach planned goals.
  2. Keeping my decisions / learnings within myself, causing ambiguity; need affirmations by way quality discussions about portfolio construction strategy as well as individual businesses to grow as better fellow investor, who can contribute back.
  3. I Will definitely try to add value to the forum in every possibility, hope I will be ready for that role soon.

Few hiccups am facing presently, which I am trying to improve.

  1. Trying to learn how to build good position in my winners as quickly as possible.
  2. Usually wait for considerable time and miss better entries in new & existing ideas.
  3. Booking profits and losses, it is based on feelings seeing the data or chart. Trying to fine tune the process to make it more data driven & systematic.

Thanks for your time.
Hope to have great investment journey ahead in the forum.

Special thank you:


I would like to use this opportunity to thank the following:
Thank you @Donald for giving such a vibrant forum and ideas on portfolio strategies.
Thank you @hitesh2710 for being such a humble & responsive leader; who is available when fellow investors needs him.
Thank you @desaidhwanil for starting in a way any average investor would start and growing to be a collaborator and showing us the path.
Thank you @Worldlywiseinvestors, @sahil_vi , @Tar, @Rafi_Syed for adding so much value to the forum. Even though you are my contemporaries, you guys are well ahead in learning curve of investing compared to average investor like me, am learning from you guys. Thank you.



Just in case the details above are not readable to some!

Symbol Sector weightage Present Stock weightage Industry structure Conviction
1 LAURUSLABS 30.31% 11.12% Long term, Structural tailwind for indian Pharma industry Very High
2 GLAND 19.19% Long term, Structural tailwind for indian Pharma industry Very High
3 DEEPAKNTR 17.19% 11.10% Long term, Structural tailwind for indian Chemical industry Very High
4 BALAMINES 3.47% Long term, Structural tailwind for indian Chemical industry Very High
5 JUBLINGREA 2.62% Long term, Structural tailwind for indian Chemical industry Moderate
6 MASTEK 18.88% 6.98% Long term, Digital Transformation Play Very High
7 TANLA 6.34% High
8 AFFLE-T 5.55% Long term, Digital Transformation Play Very High
9 KPRMILL 7.58% 7.58% Long term, Structural tailwind for Indian textile industry Very High
10 OBEROIRLTY 9.68% 3.34% Structural tailwind Moderate
11 ACRYSIL 3.52% Cyclical - uptrend Very High
12 ASTRAL 2.82% Cyclical - uptrend High
13 TATAPOWER 0.00% 4.08% Structural tailwind High
14 Sapphire 3.00% 3.00% New decadal QSR Theme High
15 Globus spirits 0.51% 0.51% Capex driven Moderate

In the title you have mentioned that you are looking to invest in businesses with moat. The stocks you have invested in are decent stocks which have performed well over the last couple of years. But I do not think they have any specific moat. There might be some differentiator like being a duopoly or having a large market share etc. But this does not mean the moat is sustainable.

I feel Google, Apple, Microsoft etc have moat. The problem in india is we need to pay a scarcity premium to purchase businesses with moat and therefore growth at reasonable price style of investment does not align with purchasing a business with moat most of the times (likes of Asian paints, Titan etc). So we either need to throw valuation in the bin or be happy in investing in sub-standard businesses without moat keeping fingers crossed that the roof doesn’t fall apart when we are invested.


Thank you @SlownSteady for your time.

Yes, I agree, there may not be solid Moat in each and every business that I own in portfolio! But there are certain differentiator and some shallow moats like

  1. Low cost producers,
  2. Highest quality compliance track record (No US FDA black marks),
  3. Lowest labour cost of manufacturing with higher profit margins and growth.
  4. Proprietary technologies to compete against likes of FBs and Amazon’s in their own games in ad space.
  5. Scale and swift delivery technologies (more than just messages) to compete at global scales.
  6. sole manufacturer in Asia with low cost manufacturing advantage.

If convinced, I will change the name to something like ‘Differentiated advantage’. You may also suggest sir!

I agree that India & Indian companies trade at premium to other EMs and developed markets. But, it is not just because of scarcity premium, it is also to do with India’s soft power and it will continue to do so!

In a note issued by White Oak AMC, they mentioned the reasons. In this interview with Mr. Ramesh Mantri, CIO of White Oak AMC enumerated the details. Here are the important points:

Soft Infrastructure

  • India trade 60-80% premium to other EMs. India has been trading at premium for past 20 years.
  • GDP / Sales / Profit growth matter but equally important are the other matrix.
  • China’s GDP expanded 9% against 7% for India for last few decades but still Chinese equities lag Indian equities.
  • other EMs have hard infrastructure which can be created in 5/10 years. India score high on soft infrastructure which takes generation to built.
  • India score high on separation of power between legislator/ executive and judiciary.
  • Rule of law and strong property rights almost equal to standard in developed world.

SOE ownership

  • PSUs across the globe trade at discount to private enterprises.

  • Indian market have just 6% weightage of PSU in indices against EM average of 19% and some EM has as high as 40%.

Market composition

  • Most diversified by sector / ownership and single entity exposure.

  • Taiwan has hard tech 67% of markets and 37% of single company TSMC alone.

  • South Korea has 41% weightage of hard tech and Samsung group alone has weightage of 39%.

  • Russia 60% commodities.

These sectors are more cyclical in nature.

Indian earnings are more resilient and assets quality is much better.

Perhaps first time someone took soft power of india and connected this with equity markets.


Hi Ananad,

What do you mean by Soft infra. , you mean software infrastructure ?

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Hi sayed,

Soft infra/power is

Others like huge working age population, To certain extent high skilled, English speaking skills etc

Even the long growth runway ahead of us also contributes for premium!

Nifty structure on both Daily time frame and Weekly time frame looks Bearish.
So, we are not near to bottom. So, buy on dip strategy needs to wait for some more time.
I use technicals for addition and reduction. Where as Buy and exit is mainly based on business performances and industry structure.

These are my buy on dip picks from my portfolio from both fundamental as well as technical point of view at this moment.

  1. Tanla Platforms
  2. Laurus Lab
  3. KPR mills
  4. Affle
  5. Mastek

Exit watch list :

  1. Jubilant ingrevia
    Reason: I Hold 3 chemicals businesses, considering diversification of portfolio, would like to retain Deepak Nitrate and Balji Amines seems to be better bets at this moment. All my Chemical business holdings are vulnerable to crude prices so, there will be input cost pressure.

Missed few exit opportunities in Jubilant Ingrevia, will have to wait for decent raise for minimum loss exit.

I generally prefer Weekly time frame for looking at charts for support and resistances for addition and trim.

Hello Sir,

This seems to be a decent portfolio to me. Can you please share your investment process just a few pointers would suffice to since I currently have only index funds in my porfolio and want to allocate a portion of my portfolio in mid & small caps. Also I would recommend you SOIC - A youtube channel, which shares amazing insights.

Thanks !


Hi @Karan_Lakhwani

Welcome to ValuePicker!
Good to know my portfolio is certified as ‘decent’ by a CA’s Assessment. :wink: Thank you!

I have written about my investment process in my first thread above, you may go through, I am happy if it can help you in any way -

My investment theme is also explained above, few pointers listed herewith if it helps you.
I look for following.

1 Business has Large addressable opportunity for growth & Capital reinvestment? Say for 10 years!
2 Business has High and growing ROCE ? >20-25% with High retension?
3 Are you certain on ability to generate High ROIIC- Return On incremental invested capital?
4 Business has High Earnings margin(>20-25%) and Earnings growth (Profit growth) >10%
5 Business has Raising Cash flow from operations and Raising positive Free Cash flow? >20%
6 Business’s Competative advantages (MOAT). Qualitative insight.
a) Strong Intangible Assets - Brand, Patents?
b) Switching Cost advantage? (like SAP, oracle )
c) Monopoly business?
d) Low-Cost Advantages - process, scale, niche, and interrelatedness.
e) Product or service that is far superior to their competitors?
f) Proven result oriented High R&D spending on new tech?
g) Network effects in play? (Uber, Affle, OYO etc)
h) Low-cost production resulting in Pricing power?
I) Cultural MOAT - (Improving customer experience, Scale of Economy…
j) smart competitor with unlimited financial resources Can’t replicate business? in 3 years
k) Business is part of Industry with structural
tail winds of growth?
Sector/niche Leadership?
Learning organization? Focus on few business
lines? Disciplined on Capital
8) Track Capital allocation decisions of surplus cash flow of company, is it in Healthy zone for business

Thanks for sharing about SOIC, I am a very big fan of Ishmohit bhai and his work for long time now and learnt a lot from him. He is adding value in this forum too @Worldlywiseinvestors , check it out.

I am still new & I am looking to learn from the forum members by their comments and advises.

If this reply has helped you, then am happy; that this thread is useful in some way :innocent:



Thank You very much for your response brother. Thanks alot for taking the time to share this. Also do check out Scientific Investing on youtube which is another good source of information I recently came across

I do follow Scientific investing! I know several good sources for study! Do message if you are interested in knowing.

At present, Information abundance is a decent boon and a bigger bane!
IMO, we should focus more on ‘behavioral’ sources of information available.

The important thing what I have learnt till date is to acquire a skill to avoid noise and train brain to focus on what really matters to you and what’s your tendency! (I am learning this skill)
The funny part is, to figure out what is your natural tendency/behavior of investment is tougher part and toughest is to execute your investment decision in line with your natural tendency, we realize it after lot of experiment and fee payment to market.


Hi Anand,

Thank you so much for the mention.

Coming to the portfolio:- do check out companies from different sectors like Kei, Usha Martin, Narayan Hrudayalaya, Metro Brands, Niit Ltd, and Apl Apollo in Building materials etc. This can give a good factor diversification with strong earnings growth.

Pf is skewed with high allocation in Gland. Do check if the growth from this base can continue and what are the triggers that are coming up.

All the best for your journey ahead!


Hello ishmohit bhai,

Thank you so much for your valuable suggestions about diversification & biggest Allocation. Appreciate that you made time to respond about the portfolio.

I will study and incorporate the suggestions, It means a lot :innocent: :star_struck:


I agree that portfolio is skewed towards Gland, The reasons are.

  1. We were in the verge of quitting direct equity investing in November-2020; because, portfolio was not in good shape & we could not handle our hyper emotions (Temperaments) driven by market volatility and constant peer competition/comparisons, which made us feel that direct equity investments are not for us.
  2. We decided, we will continue equity investing if only Gland’s IPO is allotted and it performs good after allotment (Had more than 15 unsuccessful attempts of IPO application).


  1. We consider Gland is a leader in it’s niche injectable manufacturing segment and it is performing with the numbers quarter after quarter. Gland Pharma- Generic Injectables - #123 by Rafi_Syed
  2. Key triggers which are anticipated are
    a) Successful foray into Vaccine (Sputnik lite) manufacturing and shipment. Gland Pharma- Generic Injectables - #124 by Anand_Investor
    b) Which might open bigger doors for Bio-CDMO opportunity
    c) Successful entry into china (Next biggest market after US) and INDIA (Growth already seen, though on a lower base) will give a long runway for growth. Gland Pharma- Generic Injectables - #125 by Dev_S

Because the position size is good as you say “” Position sizing hai khaas, baaki sab bakwaas" ", has influenced me so much.

Will hold on to Gland for some time before trimming.

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I still qualify to claim new to investing journey and in invaluable VP forum.

For all those learners, who are in initial years of their investment journey, I must say, this forum is a gold mine.
I had read 1. The Psychology of Money 2. The Joys of Compounding 3. Rich dad poor dad 4. A wealth of common sense etc…and has more than 2 years of market experience, I was feeling I had decent hold of what I was doing.

There came the guidance of @Donald sir, how & where to start the foundations in VP and Books to read.

Which are the books we would recommend unhesitatingly to beginner investors, and perhaps in what order?

I am recording my top5 beginner investor books. Please pitch in with your favorites with brief comments, so we can all take quick decisions to enrich our reading lists!Beginner investors will perhaps benefit the most, if we do a good job of this, but am sure all of us will be the richer for it.

1.Five Rules for Successful Investing , Pat Dorsey

I wish this book was the first on my reading list. If you want a practical do-it-yourself, step by step tutorial on how to analyse/research a stock in-depth, this is a no contest, hands down winner!

The books recommended by Donald sir, just opened my eyes, My personal favorite now is The Warren Buffet Portfolio and 5 rules for successful Investing by Pat Dorsey.

I would recommend all new members of this community to start their journey strictly at New to VP - How to make the most of VP Learning Base - #7 by Donald

and take everything in these posts as the personal advice from a best financial advisor, yes it is crafted that way.

The real investment journey started,

All the best, will update on the progress made…


Hello Anand sir any book recommendation which will help to understand the complete value chain of industry. I remember @Worldlywiseinvestors had said in his video about Competition demystified is good book to understand industry value chain have you read it?

Among the books I have read, The Five Rules for Successful Stock Investing tries to address -
How do companies in each industry make money?
How can they create economic moats?
What uniqueness does each industry have?
How can you separate successful ones from unsuccessful firms in each industry?
What pitfalls should you watch out for in each industry?
try if it help you…

I am yet to read Competition demystified!


Okay sir Will read it Thank you for mentioning this book :slightly_smiling_face:

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Insider trading activity of my portfolio stocks in FY-22-23 till date.
Insiders buying considerable quantities of following stocks.
Mastek - Looks positive
KPR Mill
Affle - Looks positive
Gland (ESOPs)

Some disposal seen in both Tanla & Gland

Insider Trading Significant acquisitions for All portfolio stocks from Apr 01, 2022 to May 20, 2022.pdf (31.9 KB)

In Q3 - 22, Decent insider acquisition seen in Deepak nitrate, Laurus, Affle, KPR, Mastek.
Disposal seen in Tanla & Gland.

Insider Trading Significant acquisitions for All portfolio stocks from Jan 01, 2022 to Mar 31, 2022.pdf (48.6 KB)


I went through your posts. Good to know you invest with 5-10year horizon. However, I am confused with your statements regarding relying on charts etc. If you are a fundamental based investor stick to that, do not get confused with charts. This is my opinion. Charts/Technical analysis is tactical and typically short term trading oriented. The two having nothing to do with each other. If you are using charting to time your entry exits, in a way you are mocking your fundamental conviction.

Charts can indicate buy/sell for a number of reasons - nothing to do with fundamentals. Over 10 years if one is looking at 10x return for example , a plus/minus 10% in buy price or sell won’t make any significant difference. Your conviction has to be on company’s future - not on some candles , patterns etc which are based on historical stock price data.

You have many companies in your portfolio such as Tanla, Affle which are growth stocks. As an example , Tanla may look good or bad on charts on a given day … However it’s fundamental value and story remains unchanged over short periods of time. If I have conviction that Tanla will cross 10K in 10 Years , I am not going to be looking for a head over shoulder etc , I am going to press the buy button. All patterns are irrelevant against that fundamental analysis and belief.

So please clear your perspective whether you are truly a 10 year forward looking investor or a trader looking at past price data. Nothing wrong in either. But both don’t mix well.

All best.

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