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 ). 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.
I doubt that you are a newbie in the field of investment . 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.
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
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.
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…
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 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.
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
I started my investing journey in the second half of 2019. 2021 has been a great year with respect to learnings. I have restructured my portfolio based on the learnings. So here is my PF as of Dec 2021.
Milestones in 2021
Increased investments in Equity
Created an MF Portfolio
Created a Satelite Portfolio
Portfolio
Coffee Can Portfolio
Mid Cap Portfolio
MF Portfolio
Overall PF Spread
Coffee Can Portfolio
Updates
Increased allocation to AsiaPaint/HCL Tech
No new Stocks were added
Mid Cap Portfolio
Updates
Reduced stocks from 16 to Just 8
Improved allocation
add Jubilant Ingrevia
MF Portfolio
Motilal Oswal Nasdaq 100
Edelweiss Greater China
PPFAS Flexi Cap
Goal 2022
Increase allocation to MF, Identify two more MF (Preferably IT, Nifty50)
Stop Greater China SIP as allocation exceeds 5% of the overall fund and this fund has inherent risks
Identify at least one good Midcap and start investing (Preferably from IT/Platform/EV/Renewable Space)
Quality portfolio …we have quite a few stocks in common like Tata Consumer, Nestle, Titan and Pidilite.
During what appears to be a volatile 2022, I’m sure this portfolio will outperform the index. Since midcap accounts for only 18% of your overall portfolio, males sense to concentrate number of stocks.
Thank you for your comments. I have tried my best to keep quality stocks
In my opinion midcap stocks are very volatile and sourcing trend-changing insider info is pretty difficult for retail investors. Even in my current choice, I sense some downside risks most of which only time can answer
TATA Consumer → Very high PE and low growth - Can be a success only if they exceed expectations
Syngene → Very sluggish growth and will take a long time to know if it will succeed
Jublingrevia → Pollution issue, Slow reacting Management
Deepak Nitrite → Have to succeed in Capex utilization and move towards more high margin
CDSL → Risky cyclical revenue streams
IEX → Highly overvalued and expected to retain same growth rate for next few years
So I expect a success rate of 50% for Midcap PF Stocks. At a 50% success rate, the winners will run for the losers as well.
As I learn more I see the difficulty to track stocks in the PF. At present, I don’t get time to monitor my Large-cap PF quarterly I review them only on an annual basis. Eventually, I’m thinking to have equal weight in MF and Stocks as that brings in the convenience of less monitoring, derisking the PF in the long run. I wanted to keep a concentrated Stock PF of12 all-inclusive which will make it easy to monitor and bet confidently.
2022 is my 4th year in Investing. My investing methodology has improved, focusing more on peaceful, limited-risk investments with realistic return expectations. I have also adopted goal-based investing primarily through Mutual Fund investments.
Milestones - 2022
Adoption of Goal-based investing
*Allocation inclining more toward MF
*MF and Equity allocation at equal levels
*Equity investments have crossed investments in Real Estate
Portfolio
*Large Cap Portfolio (Coffee Can)
*Mid Cap Portfolio
*MF Portfolio
Overall PF Spread
Large Cap Portfolio
CODE
Industry
Buy
Buy %
ITC
Consumer Staples
₹210
11.3%
HCLTECH
Information Technology
₹835
8.1%
TCS
Information Technology
₹2,947
8.0%
TITAN
Consumer Discretionary
₹1,450
7.9%
BAJFINANCE
Financials
₹4,687
7.2%
ASIANPAINT
Materials
₹2,430
6.8%
PIDILITIND
Materials
₹1,873
6.6%
NESTLEIND
Consumer Staples
₹15,936
5.7%
HDFC
Financials
₹2,154
5.6%
ABBOTINDIA
Health Care
₹14,523
5.2%
HINDUNILVR
Consumer Staples
₹2,175
4.9%
GODREJCP
Consumer Staples
₹763
4.8%
KOTAKBANK
Financials
₹1,545
4.8%
HDFCLIFE
Financials
₹609
4.6%
RELIANCE
Energy
₹1,676
4.3%
BATAINDIA
Consumer Discretionary
₹1,457
4.0%
Updates:
Increased allocation on the Top 8 Stocks
Bajaj Finance/TCS/Pidilite is now on the top listt
No new stocks added
No additional investments in the last six stocks
Mid Cap Portfolio
CODE
Buy
Buy %
IEX
₹164.76
16.2%
JUBLINGREA
₹605
14.6%
DEEPAKNTR
₹1,614.16
14.5%
TATACONSUM
₹695.47
13.7%
SYNGENE
₹562.00
12.4%
LAURUSLABS
₹382.54
9.8%
APLAPOLLO
₹539.86
9.4%
CDSL
₹600.00
9.4%
Updates
No New stocks added
Increased allocation to IEX/JUBLINGREA (A tough bet)
Will stay away from investing in Midcaps further as they require a lot of conviction
Planning to go the MF way for Small/Midcaps
MF Portfolio
MF Name
Current
Nasdaq 100 FOF
12.33%
Greater China
19.36%
PPFAS Flexi Cap
23.46%
Edelweiss Midcap
16.70%
TATA Digital
16.70%
Canara Bluechip
11.45%
Total
100.00%
Updates
Nasdaq investments are from 2021 as new investments have been barred
Midcap/Digital/Bluechip is MF where I’m investing aggressively so PF will be different next year
Goal 2023
Identify One Small Cap and Index PF to invest.
Increase allocation in MF to achieve an allocation ratio of 65:35 (MF: Equity)
Invest in a new-age business (Risky bet) - Probably it is going to be Zomato but let’s see
After reading your last post I am bit confused.
Can you please share your view why you went with 65:35 (MF:Equity) allocation ratio, and since you are increasing your stake majorly in Large caps, have you noticed your overlapping % with your Mututal Funds.
I haven’t gone to 65:35 yet but I’m planning to go this year. The reason is I want to reduce direct equity investing because I lack the time to follow up on the companies I have invested in. Eventually, I don’t want to continue investing in large-cap stocks at all instead I would stick to a large-cap fund. I’m looking to restrict my equity investments only to Midcap stocks and limit it to about 5-6 numbers.
). 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.
Coffee Can 
. 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 
it’s a late realization for me 
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.
