Sathya - Portfolio

Dear All,

The last few months that I have been passively involved :smiley: in Valuepickr has been quite enlightening. The work that has been done by the seniors who are all humble to a fault is quite amazing. Though I have been dabbling in the markets for nearly a decade, it is only in the past 18 months that I have put in some conscious effort to formulate a personal investing strategy. It is very much still evolving at this stage and that is the reason why I have only invested about 30% of the capital that I wish to allocate in equities by the end of 2016.

I request you all to have a look at the portfolio mix and provide your valuable comments on the same:

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What is your strategy to invest in Gokaldas exports

What is your strategy on Talwalkars. You allocated at top 3. Top 3 constitutes 50% of the portfolio. Is this temporary or you will maintain the same allocation in future as well?

As per conversation with my friend who interned in Karuturi:

  • The company is almost dead
  • They have legal problems with the land they claim to have purchased in Africa
  • Their top management is resigning

Recently, I have heard that many punters are moving the stock since it is now penny stock. As per my opinion you should exit the stock and invest in good quality company.

Disclosure: Not invested.

@mmvravindra I know this will be the first question that will come up! Gokaldas is one stock that I have bought purely on borrowed conviction expecting a turn around in the numbers + current run in the textile stocks. For the same reason I am waiting for the latest quarter results before taking a decision to hold/exit.

@karthi3219 Repco Home and Talwalkars are the two stocks that I became accumulating about18 months ago. The high weightage is mainly due to the good run in both stocks over the last 18 months. Talwalkars have consistently come up with the good results - consistent revenue growth, premium pricing ability, improved same store numbers, in my view they have ability to grow organically as the spending power of the population increase. The company has also been proactive in expanding their offering into premium services - zumba, nuform, etc. Looking at it qualitatively, I think in the long term, if one believes in the overall growth of the economy, this is one segment that will expand significantly.

@vivek_mashrani Thanks Vivek for your input. Karuturi is a legacy from a few years ago where I lost some money. I am keeping the stock in my portfolio for two reasons 1) As a constant painful reminder for me as to what happens if I just sit tight and hope for a recovery when a stock is in a free-fall and 2) the value itself is minuscule as you can see from the percentage share even after the stock has almost trebled in the past few months. Yes, i do agree with the fact that some punters have pushed the stock despite no change in the fundamentals.

This idea of keeping worst performing company in our portfolio to remind every time “what happens when our strategy went wrong” sounds good. But this applicable only if the amount invested in the company is less as in your case

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0.27% of your today’s portfolio might be enough to cover for 1 year of schooling for your grand child. I might be entirely wrong with my example but the point is as shareholders we must be ruthless in capital allocation, bits and pieces here and there can indeed make a difference if you are willing to stay in the game for many years. You need to come out of this mental accounting. Every rupee matters and your job is to compound it. As far as learning is concerned there are better ways, just watch around you and you will see people doing mistakes all the time and as Charlie Munger says you can become a collector of human follies. Over a period of time and a bagfull of these follies will serve you good for the rest of your life, and not just in investing.


Dear @madhug and @mmvravindra

Thank you very much for your opinion. Apologies for the late reply!

@madhug I thought about what you said and I agree yours is a much better perspective. I am also wondering if I am fooling myself with all this excuses when in reality deep down in my heart I want the share to recover close to my investment price.

I will give it some more thought and then will act on it.

Thanks Again!

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sathya, that was a brutally honest answer, i also had a small holding in KGL, cut my losses and got out.

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