Devesh's Portfolio

Hi VP members,
I am Devesh Balkote, Age 20, Student(finance). I am learning about investing from 2yr

My journey
I am Newbie started investing from October 2020 made some really bad investments then I started to learn more about investing and read few books (fav- one up on the wall street) recently from past few months I am really hooked to podcasts (fav- Investor podcast). Slowly trying to understand the markets and control emotions and biases still fall for some traps. I believe that fundamentals + technical both have different use cases and serve different purpose and I would like to master both. That’s my little intro let’s get started with my portfolio.

Portfolio

My expectations are 20%-25% XIRR in coming 10yr. Number of stocks: 20-25 max

I want to build a portfolio with combination of constant compounder - HDFC, RIL, HCL, HUL with growth stocks - IEX, Affle, Tanla, Praj industries, CDSL, CAMS, ARBL, IRCTC and few turnaround – IDFC Bank I have also taken some speculative bets – Associate Alcohol, Zomato, orient electric. Most of my bets seems safe but brought at high valuation cause FOMO trying to get better at this. I want to get into chemicals but couldn’t figure a strategy open for suggestions. I am holding a lot of cash and could increase it if needed looking for better valuations and opportunity. I also hold gold through SGB 8% of PF and just started to invest in REITs uncorrelated bet. I thought I could bet the markets easily but I couldn’t that’s why started to invest ETFs and never going to stop SIP. Can take some risky bets from here. Want to figure out what % of PF should I allocate to Gold, ETF, REITs and direct stock investing suggestions are welcome.

As 20yr old going to start my career soon I want to build good discipline about investing. Any industry or company I should study? I would like to hear from you guys about that. Suggestion, recommendations or criticism about my current PF is welcomed. I will keep updating my PF on monthly basis. Thanks you for reading

3 Likes

I am also a 19 year old newbie investor, so I’ll just share my perspective here. There are many sectors of the economy which might see exponential growth in the next few years. We know EVs, Renewable Energy, etc. While analyzing these sectors, I found many direct players, which may or may be the true beneficiaries of this upcycle, like Tata Power in RE, Tata Motors in EV or L&T in Capex, etc. So I started looking for proxy plays for these sectors. I got intrigued by cable and wire companies like KEI and Polycab. They have their EPC business as well as domestic and industrial wire segment. Since EV growth and the charging Infrastructure is still an early trend, some or the other day, it will benefit these companies. It takes a lot more wires in an EV than in an ICE vehicle. Same goes for the Renewable Energy sector. It takes kms and kms of wires to connect the power station with the grid. Hence, KEI and Polycab can be good, less risky bets for these 2 sectors. You already have IEX on your watchlist. I don’t know if you know this, but Energy Exchanges will play a crucial role is managing the Power generated from Renewable Power Plants. Also their Gas exchange investment will start generating returns soon.

These are 2-3 stocks on my watchlist. Another stock can be M&M, owing to the changing consumer preference from hatchback vehicles of Maruti to SUVs of M&M or even Tata Motors for that matter. In their latest Annual Presentation, Tata Motor’s PV segment has shown phenomenal growth.

Hope you find this helpful.

2 Likes

I agree that RE and EVs will be growing sector but currently EV sale account for only 1.3% of total vehicle sale so hard to judge who is winning here in India and TATA group can have a good synergy in this sector but currently both Tata power and motor are trading at premium and they have really high debt. I am tracking KTIP technology and trying to understand there biz model. Regarding Polycab and KEI both are good companys, if I had to choose one I will go with Polycab because they are diversifying there biz to FMEG which is also a growing sector. I already have stake in IEX will increase Weight to 6% if they can keep there growth rate but they still have market coupling threat which might take its title of monopoly. I will attach an old article below explaining this further.

Seems like semi-conductor shortage is extended further 12 month and as macros are changing demand for Cars might reduce. I don’t follow auto sector that much but will definitely look into this.

Thanks for sharing your thoughts.