Hello Sir,
I am big fan of investor’s who bet big and have concentrated portfolio!
Me too in a process of developing a concentrated portfolio, I have reduced from about 35-40 businesses to 15 businesses now, details here Businesses with ‘MOAT’. Investment Strategy & Discussions
50% of my portfolio is made up of Gland, Deepak, Laurus & KPR mill.
Can you help learn the key points to build concentrated portfolio,
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Yes, conviction is one of the key things, is it just driven by quarterly/yearly numbers or do we need to have in depth knowledge of products/industry or rough idea about business will do, being an engineer, presently not in a position to understand chemistry fully which is major portion of my portfolio now!
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Key performance parameters to track from quarterly numbers/annual numbers. Or we should go by how story is panning out?
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What should be the cash position for adding during correction or we should be fully invested?
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how to review the performance of different business in the portfolio, some may do well some may lag behind for few quarters, which one to add or which one trim?
Any systematic approach you can guide or gut feeling sir?
Thank you
Anand