ValuePickr Forum

Portfolio of Leaders for Long Term

Hi…This is my first write up on Valuepickr.

I would like to share my portfolio which I am holding…I continue to buy these through SIP and also whenever I see them down by 20% from 52 Week High…the capital allocation is 10% to each of these stocks and my time horizon is 10 years

As I am not so great in tracking the fundamentals, I have chosen the leaders from few sectors where I have view on.

The rationale for these picks

  1. Want the portfolio to be very concentrated for tracking
  2. All of these stocks have MOAT in their respective sector, have huge market share in the sectors they operate
  3. All of these stocks have history of being consistent compounders (while that does not guarantee future returns)
  4. All of them (barring HCL and TCS) are from different sectors
  5. These stocks can withstand all weather with less volatility
  6. They can deliver about 12-15% CAGR returns as I am looking for long term…low volatility and at this rate of returns, compounding will work in my favor

I sincerely request you to please share your feedback or inputs

Asianpaint
Pidilitind
TCS
MCDOWELL-N
ITC
HDFCLIFE
HCLTech
HDFCBANK

Thank you again

5 Likes

Hi Saidi,

It will be great if you can share your rational over these stocks in portfolio.
Five stocks from your portfolio are also a part of my portfolio.

Hi, I also own Hcl tech in my portfolio and I find it cheap in valuation compared to peers and also re rating is possible

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Hi Sudheer
I have updated my write up and added rationale…Kindly share your views.

Why do you say HCL have a MOAT? IT sector is fiercely competitive costs pressure define win vs loss more than quality these days. Also with the change in technology and migration to cloud there wouldn’t be many legacy IT infrastructure which will come for maintenance. Overall Machine learning and Artificial intelligence can definitely impact the margins and productivity of IT service provider.
please help better my understanding

Solid companies. Double weightage to IT looks relatively large. Can reduce that and maybe add a fast growing pure FMCG. Similarly Asian and Pidilite have adjacencies so a little reduction can pave way for a quality consumer durable and domestic branded Pharma. Although both Asian and Pidilite are not something to be sold.

Disc. Not a recommendation to buy/sell. Just an extension of thought process based on your picks

The margins are improving as per latest quarter. Also the moat is repeat business and they are already getting good business in cloud and AI, so there is no negative impact due to latest technologies.

You need to add a few more stocks, you’re missing allocation to pharma, energy and chemicals. All three areas where growth is expected in next 10 years.
Your ITC allocation will give you very good dividends every year, make sure to use that money to reinvest and build your portfolio.

Sure thank you for ur inputs
Will looking into these sectors

Thank you for your inputs…I want to be with known and established players hence could not include those 3 sectors. However point taken and will reassess.

I work with IT firm and while your point is valid but to get to that stage it’s gonna take time and also all these companies are taking right measures to stay relevant hence do not anticipate much dip in their performance

Great solid companies. Find sectors that you feel will perform strongly over the next 10 years and add them to these as a 2nd holding. Just as you have HCL and TCS, why not have HUL and Britannia or something like that as you add more money to the portfolio or sell some shares to rebalance.

Rebalancing is key to portfolios, esp. when done slowly for a consistent CAGR performance. No CAGR performance of individuals, when done completely DIY should be compared to Indices, MF, ETFs or Friends. Why? You have to enjoy investing, have conviction, and be completely responsible. If you constantly compare the house next door, and across the street, you will always be unhappy and change your strategy. This is my thinking and many will disagree until you get to 30+ years of investment experience, and then you might say what I am saying. I just measure my portfolio with my own capabilities, standards, and do have a mix of MF, ETFs, DIY-Managed-Portfolio, and enjoy doing this mix of investing.

KKP