Liquidated my investment for real estate purchase in Dec 2017 and after a gap of more than two years from Dec 2017 till March 2020, I have started my equity investment from April 2020 in a phased manner from the available saving.
Challenges faced during this investment phase.
Unsure how the market will play out hence not ready to deploy all my savings, instead chosen to deploy capital at a phased manner. Since the market was moving up I could only average up and I was deploying larger capital with gaining confidence in market. This made my portfolio returns look below par.
Initially was maintaining four portfolios 1. Core Portfolio (Large cap - Leaders), 2. Value Portfolio (Large cap - at good valuations) 3. Growth Portfolio (Midcap and Small cap) 4. Contrarian Portfolio (Companies affected by Covid). And after much analysis and reading decided to have only Core Portfolio and sold other portfolio companies. This is to have higher allocation as well as have concentrated bet. More importantly I have less companies to track also since these are Large cap leaders in their segment I will have good sleep at night.
Portfolio Design Strategy
The Core Portfolio was designed as copy cat portfolio of my twitter gurus from whom I have learned a lot during this Covid imposed lock down.
Based on the suggested company from my twitter following I have narrowed the investment company by comparing the allocation of my suggested company across three index. 1. ind_Nifty50_Value20 2. ind_Nifty100LowVolatility30list 3. ind_nifty50list . Selecting only the suggested companies with higher allocation in a sector for investment.
Heath care companies are selected based on a different approach. The approach is not to look for pure pharma company rather look for other healthcare company in the supply chain. Thus arrived at API, CDMO, CRM businesses. And selected the leaders in this business.
I still have some capital left with me and I will deploy them in a phased manner till the end of this year.
Also planning to add United Spirits or HDFC Life in future if it comes at attractive price. Will add only one from these stocks which will have minimum 5 percent allocation.
Also from next year I will do SIP in this portfolio.
Will review the portfolio quarterly and will make changes to the allocation.
Criteria for exiting a stock. Consistent financial under-performance when compared to peers for 6 quarters or major disruption.
Expectation from this portfolio
- Minimum two times the risk free returns in a five year time horizon.
- Good sleep at night
Malai’s Copy Cat Portfolio
|S.No||Stock Name||Inspired From||Alloc%||Comments|
|1||ASIANPAINT||@MarcellusInvest||7.5||Leader in Paint|
|2||BRITANNIA||@FI_InvestIndia||7.5||Leader in its segment Food(biscuit, waffels, etc)|
|3||DIVISLAB||@MarcellusInvest||7.5||Leader in API manufacturing|
|4||HDFC||@MarcellusInvest||7.5||Leader in Housing loans|
|5||HDFCBANK||@MarcellusInvest||7.5||Leader in Private Banks|
|6||HINDUNILVR||Own||7.5||Leader in homecare and beauty products|
|7||ITC||@dmuthuk||7.5||Leader in Cigarattes|
|8||NESTLEIND||@MarcellusInvest||7.5||Leader in baby products and noodels|
|9||PIDILITIND||@MarcellusInvest||7.5||Leader in adheseives|
|11||SYNGENE||@unseenvalue||7.5||Leader in Biologics API manufactuirng + Contract Manaufacturing|
|12||TCS||@MarcellusInvest||15||Leader in IT|
Snapshot from my holdings:
Your suggestion for these portfolio are welcome.