Happy New year!!
I have been using VP forum since 2013 and started my investment journey in FY12.
And I would like to thank VP team for providing such a great platform to learn about stock markets and also for the in depth info/analysis on different companies.
sorry, if my rationale for investment info is not capturing the more details,but i’ll share my thought process if anyone is interested in any of my portfolio stocks.
Currently am not looking for any changes to the portfolio but i would like to keep the max size of stock to 10-15% of PF and if anything breaches beyond that i’ll trim my positions based on the stock valuation and the available opportunities in the market.
As am a long term investor and would like to hold stocks for 5-10 years if underlying business is good with strong moat at a reasonable valuations.
For generating the extra alpha to PF, i take some contrain positions with PF position size of less than 2-3% and would sell once it reaches the peak value.
I would like to be more happy by taking your valuable suggestions and feedback!!
Eicher Motors ~10X
Amara Raja ~ 4X
Finolex Cables ~ 2.5X
Torrent Pharma - 10% CAGR
Pidilite - 3X
JB Chemicals -3X
** 2017 New Entries**
Hi. Maybe you need to pay more attention to number of stocks you have. Even with avanti and mannapuram you have not beaten the broad market. Would like to learn from you your rationale
Thanks for taking time and replying back on my PF thread.
I strongly feel 15-20 stocks are good enough for a portfolio and my top 10 holdings currently occupied ~76%.
Avanti Feeds is a very well known and proved business and growth is also not slowed down and still have a potential to grow 20-25%CAGR if their expansion plans and new business verticals delivered as planned.
And comming to Manappuram am happy with management and thier risk free gold business.They had recently ventured into different lending business like MFI,HFC,SME, Truck loans and they want to increase the non gold loan business share to ~50% in next 3-4years.
Their TIER1 capital is around ~30% and as per RBI it should be minimum 12% for NBFCS so they don’t require any additional capital for next 2-3 years but more interesting things to lookout are Rural economy recovery and growth in new business verticals.
And coming to PF returns am MORE MORE happy with 24-26% CAGR for a duration of 5-10years.
Luckily I got ~29% CAGR for 5.6years for next 5 years even if I generated 24% returns I’ll get around 26% CAGR for 2012 to 2022 period.
Btw this is not my full time job and I have other things to do so am having another PF investments in Mutual funds but currently it is just 16% of my total portfolio and am using that for goal based investments for a very long term of 15_25yrs and MF invesments might occupy 50% of my total invested PF in next 10years.
The CAGR numbers you aim for may be sustainable but you will probably have to keep rebalancing
For eg CAN FIN homes by many parameters may have peaked and may not appreciate at the same rate going forward - compared with peers they seem more highly valued
Peer Comparison Of Top 7 companies in the same business such as LIC, Indiabulls etc show their numbers as high PE, CMP/BV and high D/E But growth numbers have been good.
So a close watch and rebalancing with more prospective companies will be needed but I Guess you know and are doing that already
Happy New year!!
Thanks for your response!! Yes in terms of My growth canfin is slowed down but will see next 3-4Q how it is going to utilize the Housing for all scheme.
In lending business along with growth asset quality is also very important and from quality stand point canfin is very good.
I recently bought PnbHosing and it growing at 30-40% but need to track thier quality of assets in the comming cycle.
You should increase your allocation towards Pennar Industries.
It is a sleeping giant.
It will be a massive wealth creator if held for the next 3-5 years.
Thanks for your feedback, i do SIP once It started delivering the projects as expected.
As Prakash Industries got approval for demerger and also delivered good Q3 results , i added few more shares and looking forward to increase it size to 7-8% of PF
LNji, you are missing out on having portfolio names that are in the Large Cap category. With India being in growth mode, you want to have a mix of that just as you see what is happening right now.
There are folks that have their portfolio sitting at New High historically, and others are down by 25% since they were focused on Small Cap and/or Mid Cap.
I believe in a similar portfolio build with multi-sector, Large, Mid and Small Cap, and a Long Term Buy and Hold. All Buying is in SIP mode and all Selling is in SIP mode.
Hope moderators like this comment and allow it.
Thanks for your feedback ,except Piramal and HDMC AMC i haven’t made any new invesements in last 8 months and also sold some portion of Avanti,Canfin and Prakash Ind.
Btw this year am completely moved to goal based investing using direct Mutual funds.
Now 50% of my PF consists of mutual funds.
Do you forsee less growth with Avanti? I feel its a bad weather in shrimp industry overalll around the globe. Feeder for Shrimp is soya (price is lowering), hence there is potential savings on operating cost. What’s your opinion on the same.
Yes, it might face near term challenges.
It is still forming >5% in my PF.
Recent updates from My portfolio Perspective.
Completely Exited from Cera, PI & Prakash Industries,
New additions to PF CCL Products, Yes Bank During recent fall and Johnson Control.
Due to recent market developments and some personal needs, i have trimmed down my direct equity portfolio and also taken a conscious decision of not to hold more than 15 stocks in the PF and make sure that top 10 constitute 75-80% of the PF and also maximum sector weight to be 25-30%.
As mentioned earlier, i have moved my investment strategy to Goal Based investment strategy by investing in Direct Mutual Funds. Hence my direct equity investments were just below the 35% of my combined Equity PF which predominantly consists of MFs.
Though my direct MF portfolio returns are below par compared to my direct equity investments , I would like to stick to the Goal based strategy linked with Mutual Funds.
|Piramal Enterprises Ltd (XBOM:500302)
|Manappuram Finance Ltd (XBOM:531213)
|Tata Elxsi Ltd (XBOM:500408)
|CCL Products India Ltd (XBOM:519600)
|Can Fin Homes Ltd (XBOM:511196)
|KEI Industries Ltd (XBOM:517569)
|IDFC First Bank Ltd (XBOM:539437)
|Oriental Carbon & Chemicals Ltd (XBOM:506579)
|Avanti Feeds Ltd (XBOM:512573)
|Acrysil Ltd (XBOM:524091)
|HCL Technologies Ltd (XBOM:532281)
|Aimco Pesticides Ltd (XBOM:524288)
Sold most of my winners in last upmarket and in sidelines to add new or accumulate existing stock during downfall but didn’t get many opportunities, started adding new stocks to my Portfolio in last six months.
Here is my current portfolio, as mentioned earlier I had moved most of my investments to MFs as part of my Goal-based financial planning.
Am investing in the below stocks as part of my retirement target and to follow the markets and trends.
||% of Total
|Kei Industries Ltd.
|Piramal Enterprises Ltd.
||Core - Dividend play
|CCL Products (India) Ltd.
|Prince Pipes & Fittings Ltd.
|Pidilite Industries Ltd.
|Aimco Pesticides Ltd.
|Valiant organics Ltd
|Bank Of Baroda
|Manappuram Finance Ltd.
|HCL Technologies Ltd.
||Value - Dividend play
|Axis Bank Ltd.
In addition to this am tracking/following these stocks HDFC Twins Merger, LTI-Mindtree merger, TechM, ICICB, MAS Finance, AU Bank, and Tata Consumer.
Piramal is the bigger lagger in my PF, waiting for demerger to happen.
Planning to increase my allocation towards banks.