My investment philosophy.
1). Invest only when you trust the management. A capable management should be able correct any shortcomings and steer the company in the direction
2). Keep it simple. Prefer the company with less number of variables with decent financials
3). Don’t be part of the crowd and be wary of market gurus.
4.** Don’t worry too about short term fluctuations. Investment is like a ten year marathon, it is not an one year sprint
5). Have reasonable expectations, if you follow the above there is a good possibility of exceeding expectations in a long period
One of the most concentrated portfolio I have come across. Very interesting investment philosophy. Could you share why you invested in TTK and Poly Med on the lines of your investment philosophy? Also, almost everbody holds Mayur on Valuepickr - so, is investment in Mayur exception to the rules?
Minor point, but just wondering if you hold some cash as well for making new committments.
Entered into PolyMed around two years ago. Underlying story remains intact, though the stock price got impacted due to higher tax (33% vs 9% before) and forex issues (mark-to-market losses of around 9 cr not yet accounted). They are also increasing the capacity by 20% in 2012-13 which is financed through internal accruals and debt. I usually hold on to the stock for a longer period if I believe in the management irrespective of the short term issues.
I am not sure where to publish this.Admin, please move it this is not the right place.
I have created the following excel option future combination return calculator for my personal use. Feel free to use if you are trading using options. Please let me know if you have any questions on how to use it.
Yes. I have a decent success with options as most of the time on the sell side (learned from my prev exp.). I think options are more forgiving if you use in combination with proper risk management and keep the time on our side. I use future to cover the option if I think the market is going go against me.
I have corrected the link. The spreadsheet also plots the return on a graph and can be used any type of option or future combination.
Wow… 85 % of your money is in real estate. But how you choose to invest in real estate ,1) whether farm land or apartment complex , & 2) do you basically expect returns every month inform of rentals or you wait for price appreciation over a long period?
I guess real estate as a investment needs long patience to reap profits relative to stock, which usually gives good returns in comparably shorter period of time, but yes stock investment is always a more risky asset than real estate.
Thank you, Atul. I think international prices, weather conditions and labour shortage are the key risks for the AVT. Growthmany notbeat the same levelin the last year.
If you look at the portfolio, the stocks are basically into Health (Polymed), consumer (TTK, Mayur(?))and agriculture (PI, AVT). I may add something from education sector in near future preferly a possible turn-aound story. All of them are for very long term.
I think it happened by accident. Used toinvest excess cash andstock market profits back into real estate. Have houses/apartments andland. Land value grows exponentially if the location is right. House/Apartment gives a decent growth with regular cash flows from rent.
For real estate, I think the location is the key.All my investment decisions in real estate have been taken within half-an-hour of visiting the location.
I was reading first hand narrative of the market crash of 1987. It is really fascinating to read and look at black and white photos at that time.
Dow climbed from the low of 776 in 1982 after recession and reached 2,722 on August, 1987). Two months later, the market started its fateful downward trend, falling 260 points between Wednesday, Oct 14 and Fri Oct 16. On Monday Oct 19 the market crashed by another 508 points, a 23 percent decline.
People did not have instant access to market news those days. You know something - when the crash happened Peter Lynch was in Ireland on a long vacation and was on his way back after hearing the news. Imagine what would have gone through his mind.
Overall portfolio is doing good with the exception of Unichem and Indag. May add Poly Med if I like the price. Trading using futures and options is going well. Will move the profits from trading either into long portfolio or real estate.
Long term portfolio includes Poly Med, Mayur, Unichem, Bajaj Finance, Astral, Tata Global Beverages.