Thanks Surya for your inputs. Also please provide your views on astral poly and hawkins as well.
Hi Surya,
I really admire your though pattern and stock picking strategyā¦
could you please share your take on:
a. just dial: internet based businessā¦ sort of monopoly ā¦ once computers are purchased and office spaces rented, future profits wont require much effort in terms of cash?? further number of smartphones in country just doubled last yearā¦
b. V mart: should do better as new story in small cities??
and also please share your new insights on new emerging stories / businessesā¦
The hot favorites have become v expensive and scary to touchā¦
Astral poly: Valuation is high. Business is excellent.
Hawkins: I am no longer bullish on Hawkins. If at all I want to enter ākitchenā then i will go to ttk. But no hard feelings on hawkins though.
No need to do much analysis. Justdial is an excellent business. It is one-of-a kind. Valuations will sustain if it can grow at >50-60%. Personally i am not accustomed to such high-growth stories.
V-mart: Donāt know the dynamics but the stock seems to be standing out.
My updated portfolio:
My updated Portfolio:
Stock Allocation current year profits
_ING Vysya bank 10% -2%
Page Industries 10% -1%
GRUH finance 22% 61%
Repco Home finance 19% 51%
Kajaria ceramics 19% 51%
Atul Auto 10% 76%
Mayur uniquoters 10% 32%
I am adding more and more page and mayur.
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Hi Surya,
I have just gone through the entire thread and got impressed with your investment style. Are you still holding a very concentrated portfolio or diversified a bit ? Personally I am not very comfortable with a concentrated portfolio unless I am fully convinced on a story.
Regards,
Amit
** Stock _ profitsING _**
this is very insightful thread and stock picked by Surya are impressive. I would be happy if Surya answers:
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what makes big investors like prof Manekar to buy shares like Jain irrigation which is trading at a 750 PE. I think PE was in 4 digits when he bought it around 100+ levels. If you are not tracking the company, let us generalize it to - what should be the trigger points for an investor to buy a stock at such a high PE.
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Your views on Diversification vs Concentration. i know this is commonly discussed question here but I would like to know your take in terms of allocation % , number of stocks etc.
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I cannot tell why Manekar invests the way he invests. Everyone has their own formula. I donāt think PE is the criteria to check when you are buying at 750 PE. Something else is the criteria. There might be a huge earnings surprise in my wild guess.
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It depends on number of factors. For example, Portfolio size matters too. If your portfolio is a small one you should run fast with less companies and higher returns.25% returns are not sufficient, you need 50-75% returns. In that case 3 stocks are fine if you are sure about the game. I did that also. Type of sector matters also. If it is banking, auto, agro, oil, governemnt etc it is better to start with 5% and then increase as you believe in the story.
One of the best ways is to start with 10 stocks and then reduce it to 5 over a period of time. This will also give a chance to learn about different businesses at a time and prepare your own strategy. The beauty of long-term investing is that you can start with lower allocation and increase allocation as you go.
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Thanks.
I am holding a concentrated portfolio. Donāt worry about Concentration or Diversification, Comfort or Discomfort: Stocks donāt understand feelings. Tweak your portfolio according to your returns. sell the losers, buy the winners. Sometimes you will end up concentrated and sometimes diversified. Be merciless about returns.
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Hi Surya,
Good to see you back. Would like to hear from you more often. Any recent changes to your portfolio?
-Niranjan
that was a very satisfactory explanation about div vs conc. āBe merciless about returnsā says it well.
Hi Surya
How do you see correction in Gruh Finance. Is it a good opportunity to accumulateā¦Your thoughts plsā¦Also please post your latest portfolioā¦
-Pavan