ValuePickr Forum

Malai's Copy Cat Portfolio

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.

  1. 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.

  2. 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

  1. 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.

  2. 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.

  3. 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.

Future Plans:

  1. I still have some capital left with me and I will deploy them in a phased manner till the end of this year.

  2. 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.

  3. Also from next year I will do SIP in this portfolio.

  4. Will review the portfolio quarterly and will make changes to the allocation.

  5. Criteria for exiting a stock. Consistent financial under-performance when compared to peers for 6 quarters or major disruption.

Expectation from this portfolio

  1. Minimum two times the risk free returns in a five year time horizon.
  2. 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
10 RELIANCE Own 10 Dream big
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.

3 Likes

don’t expect more than 12-15% CAGR from this, these fund managers make a decent fee. it doesn’t make sense to invest in these companies when you only have 800-900K.

but it makes a lot of sense to invest in these companies if the size is 1 Cr +.

8 Likes

Divis lab, syngene, Tcs and RIL could show some stagnancy and/or cyclical aspect. HDFC, although best, is a lending NBFC. Others all are all season players!

2 Likes

My holdings:
britannia
pidilite
Titan
Relaxo
Hawkins

I would like to add Hawkins Pressure cooker to the list.check this article.

1 Like

Thanks for sharing the article on Hawkins. Looks interesting. For now I am not looking for any mid-cap or small-cap stocks. Who knows maybe couple of years down the road I would allocate some percentage for mid cap and small cap leaders in my portfolio.

It does not matter how much money he has. By just buying top blue chip stocks, you can expect returns close to the index. Nothing more or less.

Index returns are 8-9% in the last 10 years, good luck if you are happy with 8-9% returns on equity.

Even the biggest companies in his chosen portfolio like TCS and RIL have given much better cagr that you quoted in last 10 years. Others like Pidilite, nestle, britannia have been excellent. Althought history would not define the future, What makes you come to this figure? Just investing in small caps or hot names do not warranty better returns…can you elaborate on details and how you invest with example if possible. Thanks

8 Likes

I like your simplistic approach and I think you would be able to reach your target unless something unpredictable happens again (in which case, everyone else would also be in the more or less the same boat as you.)

Currently most stocks are considered ‘over valued’ but the same was said also last year, last quarter and last month. That does not prevent the whole stock market from going further up. :slight_smile:

1 Like

Monthly Portfolio updates:
After reading about diversification and thinking about it decided to expand my portfolio stocks between 15 to 20.

New portfolio additions

  1. HDFC Life
  2. HDFC AMC
  3. Biocoin
  4. MCDOWELL

Malai’s Copy Cat Portfolio

S.No Stock Name Inspired From Alloc% Comments
1 ASIANPAINT @MarcellusInvest 7.5 Leader in Paints
2 BIOCON @unseenvalue 5 Leader in Biologics Pharam
3 BRITANNIA @FI_InvestIndia 6 Leader in premium biscuits
4 DIVISLAB @MarcellusInvest 5 Leader in API manufacturing,
5 HDFC @MarcellusInvest 6.25 Leader in Home loans financing
6 HDFCAMC Own 6.25 Leader in Asset Management
7 HDFCBANK @MarcellusInvest 6.25 Leader in Pvt Bank,
8 HDFCLIFE @MarcellusInvest 6.25 Leader in Pvt Insurance business
9 HINDUNILVR Own 6 Leader in homecare and beauty products
10 ITC @dmuthuk 6 Leader in Cigarattes
11 NESTLEIND @MarcellusInvest 6 Leader in food and beverages
12 PIDILITIND @MarcellusInvest 7.5 Leader in adheseives
13 RELIANCE Own 7.5 Dream big
14 SYNGENE @unseenvalue 5 Leader in Biologics API, Pharma and Biologics API manufactuirng + Contract Manaufacturing
15 TCS @MarcellusInvest 7.5 Leader in IT
16 UNITDSPR @dmuthuk 6 Leader in Spirits

Snapshot from my holdings:

Note: Increased my investment during the past month as had good amount of cash in hand.

Stocks in watch list: (Not eager to add immediately will wait and watch)

  1. Abbot India
  2. NAUKRI
  3. ATUL or PI Industries
  4. BAJAJFINSV

Your suggestions, improvement ideas, criticism and feedback are welcome.

4 Likes

Monthly Portfolio Updates:
No new addition or deletion of stocks
No increase or decrease in allocation to individual stocks

Snapshot of my holdings:


Note: Net cash position is 2%. Completed monthly SIP investment as planned even though there is US election results which could make market volatile.

Stocks in watch list: Same as previous month

4 Likes

Impressive! IMO if your allocation permits then look for meaningful addition in AMC, Britannia and Nestlé based on price correction. Keep PF for atleast for 10 years horizon.

Except few names I have most of them in my PF.

Happy investing.
VK
Disc- invested. No buy or sell reco.

2 Likes

Thanks for your time in visiting this thread and sharing your feedback. I intend to keep this portfolio for at least 10 years with continuous SIP investment for another 2 years at least. I have seen your recent portfolio which shares my portfolio stocks as well. Cheers and Good luck!!!

2 Likes

Monthly Portfolio Updates:
Took new tracking position in Abbot India
Added investment to few stocks(ITC, Biocon and Britannia) only as the market is expensive
December SIP is put on hold due to unforeseen medical expenses

Snapshot of my holdings

Stocks in watchlist:

  1. PI Industries /Atul Ltd
  2. Bajajfinserv
  3. Naukri

Note: Net cash position 1%. Allocation almost remains the same

2 Likes

Dec 2020 Monthly Portfolio Update:
New addition: None
Deletion: Reliance, Britannia, HUL and McDowell’s (Rationale: Cut your losers/laggards)
Cash position: 26.25%

Snapshot of my holding:

Stocks in watchlist:
None

1 Like

January 2021 Monthly Portfolio updates

Direct Equity Portfolio allocation

S.No Stock Name Inspired From Alloc% Comments
1 ABBOTINDIA @MarcellusInvest 7.50 Leader in Branded Medicine
2 ASIANPAINT @MarcellusInvest 7.50 Leader in Paints
3 BIOCON @unseenvalue 7.50 Leader in Biologics Pharam
4 DIVISLAB @MarcellusInvest 7.50 Leader in API manufacturing
5 HDFC @MarcellusInvest 7.50 Leader in Home loans financing
6 HDFCAMC @MarcellusInvest 7.50 Leader in Asset Management
7 HDFCBANK @MarcellusInvest 7.50 Leader in Pvt Bank
8 HDFCLIFE @MarcellusInvest 7.50 Leader in Pvt Insurance business
9 ITC @dmuthuk 7.50 Leader in Cigarattes
10 NESTLEIND @MarcellusInvest 7.50 Leader in food and beverages
11 PIDILITIND @MarcellusInvest 7.50 Leader in adheseives and waterprofing
12 SYNGENE @unseenvalue 7.50 Leader in Biologics API, Pharma and Biologics API manufactuirng + Contract Manaufacturing
13 TCS @MarcellusInvest 10.00 Leader in IT

New Stock Additions
None

Portfolio Stock Deletions
None

Cash position: 3.45%

Snapshot of my holding

Stocks in watchlist:
None

2 Likes

You have 30% exposure to HDFC group. Are you comfortable with this high percentage?

When I think of financials I rank HDFC, Kotak, Bajaj in that order, I exited Kotak and Bajaj in order to reduce the no of holdings. I understand your point “concentration risk” . I will think about it, thanks for your pointer.

February 2021 Monthly Portfolio Updates

Direct Equity Portfolio Allocation

S.No Stock Name Inspired From Alloc% Comments
1 ABBOTINDIA @MarcellusInvest 7.00 Leader in Branded Medicine
2 ASIANPAINT @MarcellusInvest 7.50 Leader in Paints
3 BIOCON @unseenvalue 7.50 Leader in Biologics Pharam
4 DIVISLAB @MarcellusInvest 7.50 Leader in API manufacturing
5 GODREJAGRO @Coolfundoo 2.00 Leader in animal feed
6 HDFC @MarcellusInvest 7.50 Leader in Home loans financing
7 HDFCAMC @MarcellusInvest 7.50 Leader in Asset Management
8 HDFCBANK @MarcellusInvest 7.50 Leader in Pvt Bank
9 HDFCLIFE @MarcellusInvest 7.50 Leader in Pvt Insurance business
10 ITC @dmuthuk 7.50 Leader in Cigarattes
11 NESTLEIND @MarcellusInvest 7.50 Leader in food and beverages
12 PIDILITIND @MarcellusInvest 7.50 Leader in adheseives and waterprofing
13 SYNGENE @unseenvalue 7.00 Leader in Biologics API, Pharma and Biologics API manufactuirng + Contract Manaufacturing
14 TCS @MarcellusInvest 9.00 Leader in IT

New Stock Additions
GODREJAGRO

Portfolio Stock Deletions
None

Cash Position 3%

Snapshot of my holding

Stocks in watchlist:
None

2 Likes

Hi. Can you explain why not ?
HDFC stocks are bluest of blue chip stocks . They often beat their peers in every factor. I have always had the same question in my mind but I couldn’t find an answer although I don’t understand why do i even need to have this question.

1 Like