I started my investment journey around 2017 July ( summit of a bull market ). Started with a capital allocation strategy of 40% debt and 60% equity. Out of 60% equity, I have mix of mutual funds (60%) and direct shares (40%).
As a starter, searched for the shares with lowest price point Started investing in duds like future consumer, pcj etc. Then I started reading books like Once upon a wall street, Buffets letters, valuepickr posts etc and realised my errors. I was lucky to get rid of all those duds before the meltdown in January 2018. Even though I didn’t gain anything, protecting the capital itself was a big achievement in hindsight now. Then I started analysing individual companies in detail. It included reading quartely results, concalls, annual reports, valuepickr posts etc. Still learning, and here is my portfolio.
Mutual fund(SIP) breakup:
|Large Cap ( SBI and BSL Frontline)||60%|
|Mid & Small ( Franklin smaller, Axis midcap, LT emerging)||40%|
Direct shares ( mostly small/mid cap as mutual funds take care of large cap)
|Godgej Consumer||15%||Strong brand and products.Very transparent and strong management. Betting on sales from Africa and other South Asian countries|
|Finolex Cables||12%||Strong brand and distribution network.Management is good. Betting on real estate revival.|
|Matrimony||10%||Strong brand. Big moat of million profiles. Very good first gen management. Betting on growth in North India ( comparatively young population compared to South)|
|Federal bank||10%||Very good and conservative management. May not be next HDFC, but still a lot of room to grow.|
|Cupid||10%||Moat is FC and WHO approvals.Good management( risk of ceo replacement).betting in growth in US and increased gov spending across worl on condoms).|
|Multibase||8%||Started investing after checking the products and parent company. But parent merging caused a lot of issues. Biggest wealth destroyer in my portfolio till now. But I will still wait for one or two quarters before declaring it as NPA.|
|Yesbank||7%||It was a trading bet, but forgot SL . Still hoping for revival.|
|First SourceL||7%||Strong IT, BPO company available very cheap ( because of brexit uncertainty). Management is very good.Reduced a lot of debt.|
|Eris||6%||Domestic pharma with no noise of USFDA. Primarily a sales company I would say, not pharma as they don’t have string R&D capabilities. But will keep in portfolio as long as they report good numbers.|
|Advanced Enzymes||6%||Here the moat if strong R&D skills and only a limited companies are there in this space.|
|Vguard||3%||Very strong brand around stabilisers. And these are a must for new TVs and AC ( people wont mind spending 1500 for protecting a 50K tv ). Betting on growth across other products and pan India.|
|ICICGI||2%||Got from IPO.|
|Trident||2%||Reporting very good numbers every quarter and strong presence in US market. But I wont be committing more into it as I don’t see any moat.|
Mutual Fund (SIPS) : -5 %
Direct shares : -15%
Overall : 8.5% down.
Watchlist : Sobha, Havells, Pidillite, Page, Dmart,Cipla
NB : I still have 40% networth in debt. I will move it to equity if I find good companies cheap. But all good companies are still expensive compared with historical averages.
I invite all views/suggestions/criticisms.