ValuePickr Forum

Kamal's Retirement Porftolio

Dear Fellow Members,

I started my investing journey in Sep 2019 as a newbie with zero knowledge. As time went on I slowly gained some knowledge. I started investing when the market was at it’s peaks (Bajaj Fin 4800, HDFC AMC 3600, HDFC 2500, BATA - 1700, PIDILITE - 1600, KOTAK - 1600). My initial philosophy was to invest 15K in all the well known stocks (With no research LOL :slight_smile: ). Eventually after 8 months some accelerated learning due to corona lockdown, I gained some basic understanding of investing and cutdown my portfolio from 27 stocks to 16 stocks.

Here is my portfolio. I am planning to retain this stocks with a view of retirement in my mind. (Basically my Cofee Can). I eventually would like the dividend from these stocks to help my living after 20 years. Please share your opinion and feedback on the portfolio, weightage and stock selection.

My expectations are around 12-15% CAGR over the next 15 years. I’m 36 now.

I’m building a secondary investment portfolio which is more like for 4 years with stocks like Persistent Systems, IEX, Laurus Labs, APL Apollo Tubes, Avanti Feeds, Linde but i’ll keep that for another discussion.

Kamal’s :cowboy_hat_face: Coffee Can :coffee:

By Segment

Segment %
Consumer Discretionary 12.50%
Consumer Staples 25%
Energy 6.30%
Financials 31.30%
Information Technology 12.50%
Chemicals 12.50%

Thanks
Kamal

5 Likes

I doubt that you are a newbie in the field of investment :slight_smile:. Jokes apart, with one year of investment experience and hitting the stock selection as described above is like making not one but double century in a opening match of international one day tournament against Australia. IMO, Great selection and PF and some commonality with my PF .
Continue with patience.

Happy investing.
VK

3 Likes

Thanks @Vijay_Kiran encouraging to hear these words from an experienced VP :slight_smile:

That is a quality portfolio and now the question that remains is of valuations. These are all fair to high valued right now so right time to buy would be on dips. since 12% CAGR in 10 years means 3X earning you should evaluate them earnings growth as PE re-rating upwards from this level is less likely.

Buying at lower valuations means that you can get reasonable returns with 8-10% earnings growth which is a realistic assumption for large growth companies.

What works in your favour is there is high probability of most of them surviving so downside is protected

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excellent approach for long term

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Hi Kamal, Your portfolio is indeed coffee can and should deliver the intended returns. But, since you want to hold for 20 years at least, you may consider replacing three to four large caps with small and mid caps. Presently, Bata is the only midcap in your PF. Pl consider small to mid cap Pharma and specialty chemicals which do not form part of your PF currently. Multicap PF is very likely to deliver better returns over a longer period.

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Excellent picks, I think keep doing sip in each on dips and crashes can give excellent results…
Also though some say you have only largecaps but they are literally small large caps that you have so don’t bother much and also some are sunrise sectors like insurance & financial asset management etc. A 80k cr mcap FMCG largecap or a 1lac cr mcap leading insurance player is not something to be worried about and replace with small/midcaps…you may add small/mid caps only when you find something worthwhile to be in your portfolio because of its business and not because it’s a small/midcap…but yes…RIL can be called a true largecap and maybe even TCS…but so were they even 10 years back at 2-3 lac mcap and ONGC also close but today all charted different paths and two of them became even larger…not to say they will keep becoming larger at same rate but mcap is often a result of business performance (and hence stock) and not vice versa…

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Thank you… But i think beating NIFTY50 might be challenging with this :smile: it’s a late realization for me :thinking:

Thank you for your inputs. I agree to generate Alpha you need a mix of Mid+Small Cap along with Large Cap. This pick may not beat the index at the same time may not fall behind widely but I have now slightly changed my approach. I have developed a new Mid+Small Cap portfolio which i have listed below.

Thank You @Investor_No_1 Largecaps has also proven that they can be consistent compounders although being mammoth’s I hope it continues in this decade also :grinning_face_with_smiling_eyes: These times have also helped me gained some more knowledge on Asset allocation based on which i have realigned by portfolio slightly… I have listed it below. Please do share your thoughts on the same.

Update to my Coffee Can Portfolio

This is my current portfolio with allocation and average price

image

Allocation By Sector

Sector Allocation %
Materials 12.5%
Information Technology 12.5%
Health Care 6.3%
Financials 25%
Energy 6.3%
Consumer Staples 25%
Consumer Discretionary 12.5%

Updates

  1. HDFC AMC - Removed (To reduce concentration in Financials)
  2. Abbott - Added (Pharma)
  3. Allocation imbalance slightly adjusted

Mid/Small Cap Portfolio

image

Allocation By Sector

Sector Allocation
Materials 11.20%
Information Technology 1.50%
Health Care 22.10%
Financials 43.30%
Consumer Staples 13.20%
Consumer Discretionary 8.70%

Allocations are crazy because I invested very high in CDSL otherwise the allocation levels are slightly better but still i’m learning here. Many of the stocks with lower allocations i’m not able to track so have just left them without further allocation. I’m tracking only 8 stocks of the total 16 stocks closely.

Over all portfolio is 25% of my coffee can portfolio. This is to keep risks low as I’m still experimenting so increasing my allocation slowly

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