@Malkd, I related a lot to your write up on your family’s style of investing, and there are so many similarities on my side. My mother invested in Infosys shortly after the IPO (and a little in my name long ago, which compounded into the holding I have), and her portfolio is centered around concentrated allocations of Larsen, TCS, Infosys and Reliance that have been held for over a decade. She’s been invested through the IT bubble, the 2008 fallout, and didn’t flinch during last year’s crash.
She echoed this, but also spoke about how quality companies may be completely unrecognisable in the future. As a shareholder of Tata Elxsi from the early 2000s, she watched it transform from visual effects and providing solutions to the film industry into what it has become today. With Reliance, the story changed from textiles to petrochemicals to the retail and communications giant it has become. She won’t sell any of her Birla group shares for the same reasons, whether it is Grasim’s potential ventures in the paint industry or ABCapital’s ambitions of being a bank. Perhaps we can’t fully account for these differences over large horizons, but only the biggest companies can afford the opportunity cost of reshaping what they do in a way that others cannot.
You mentioned that your portfolio could have the freedom to be based on high beta / exploratory stocks, you’ll see the large cap stalwarts missing from my portfolio for the same reasons. I want this portfolio to be about those companies that would be central to the Indian economy ten years from now.
For example, I’ve written about liking Hindustan Foods a lot, I genuinely think contract manufacturing will become very lucrative to many industries in the next five years, and their board of directors is filled with people that they’ve pinched from leading FMCG companies. Their management commentary on revenue targets and segment growth is as bullish as Laurus Labs’, and this looks to be the start of a very exciting story. My own key trigger is for them to bag either export orders or form relations with international companies, something they say is a part of their plans post FY22-23, but is too early to yet explore.
Please feel free to drop in on this thread, it’s always nice to hear from people outside my circle of family and friends!