Tenthman Portfolio Analysis and Feedback

Q&A: Questions & Answers Portfolio Q&A
1

Hello Investors,

I have been silently lurking the hallowed forum of ValuePickr for the last few months. Have learned a lot, still a lot to learn.

A little about me and my investing journey. I am an Advocate by Profession. Was never much into stocks as I always felt it was ‘jua’. I started investing into Mutual Funds in September 2019. It was mostly because of Apps like ET Money and competing with my office colleagues over whos Mutual fund was performing better. In March 2020, the lockdown happened and the market crash happened worldwide.

Overnight, my portfolio went from 8-9 percent up to -54 percent. I didnt know anything about how the market works, but I had seen this meme: ‘Buy when there’s blood in the streets’. I put all my available capital in mutual funds at the time, and well, we know what happened to the market after that.

Over the next few months, I made a lot of money in the market and that caused me to take notice and begin studying the market.

Slowly over the last year, and after many trial and errors, I have constructed my portfolio. Here are a few rules I try to follow wrt to portfolio.

  1. I never allocate more than 7 percent in a company.
  2. I only buy companies that I would like to hold forever.
  3. I tend to stay away from PSUs, Companies with High Debt, and Cyclical companies unless there is a compelling reason.
  4. I focus on what I feel are the megatrends playing out.
  5. I focus on companies with growth of 20+ percent/Operating leverage playing out/Industry Tailwinds.
  6. I try to buy companies with a moat.

I would like to get feedback on my portfolio by the members of ValuePicker and where I might be going wrong. Heres my portfolio along with the allocation of capital invested (current percentages may be different due to CMP increasing or decreasing) and average price (have rounded off to the closest round number).

  1. Deepak Nitrite
    Average Price: 1500
    Capital Allocation: 6 percent

  2. IEX
    Average Price: 300
    Capital Allocation: 6 percent

  3. Gland Pharma
    Average Price: 2200
    Capital Allocation: 6 percent.

  4. Ultratech Cement
    Average Price: 4200
    Capital Allocation: 6 percent

  5. Asian Paints
    Average Price: 2000
    Capital Allocation: 5 percent

  6. Laurus Labs
    Average Price: 350
    Capital Allocation: 6 percent

  7. PI Industries
    Average Price: 2100
    Capital Allocation: 4.5 percent

  8. Route Mobile:
    Average Price: 1400
    Capital Allocation: 4.5 percent

  9. Affle
    Average Price: 4500
    Capital Allocation: 4 percent

  10. Tips
    Average Price: 1100
    Capital Allocation: 3.5 percent

  11. CDSL
    Average Price: 550
    Capital Allocation: 4.5 percent

  12. Mastek
    Average Price: 2000
    Capital Allocation: 3.5 percent

  13. Pix Transmission
    Average Price: 500
    Capital Allocation: 3 percent

  14. ICICI Securities
    Average Price: 400
    Capital Allocation: 3 percent

  15. Divis
    Average Price: 3200
    Capital Allocation: 3 percent

  16. Saregama
    Average Price: 2100
    Capital Allocation: 3 percent

  17. Strides
    Average Price: 800
    Capital Allocation: 3 percent

  18. Syngene
    Average Price: 550
    Capital Allocation: 2.5 percent

  19. Sequent
    Average Price: 150
    Capital Allocation: 2.5 percent

  20. Indoco Remedies
    Average Price: 400
    Capital Allocation: 2 percent.

  21. Manappuram Finance
    Average Price: 160
    Capital Allocation: 2 percent

  22. MSTC
    Average Price: 250
    Capital Allocation: 2 percent

  23. Borosil Renewables:
    Average Price: 220
    Capital Allocation: 2 percent.

  24. Vaibhav Global
    Average Price: 800
    Capital Allocation: 2 percent.

  25. Nazara
    Average Price: 1500
    Capital Allocation: 2 percent

  26. Fairchem Organics
    Average price: 900
    Capital Allocation: 2 percent

  27. Tanla
    Average Price: 800
    Capital Allocation: 1 percent

  28. IRCTC
    Average Price: 1700
    Capital Allocation: 1.5 percent

  29. Naukri
    Average Price: 4200
    Capital Allocation: 1 percent

  30. Praj Industries
    Average Price: 350
    Capital Allocation: 1 percent

  31. Deepak Fertilizer
    Average Price: 280
    Capital Allocation: 1 percent

  32. HG Infra
    Average Price: 350
    Capital Allocation: 1 percent

Looking forward to all questions and feedback that you have.

2

Just one point from me. As you have a maximum allocation threshold for a stock, you should also have a minimum allocation threshold. What I found out is if I am ready to commit a meaningful capital to a stock, the quality criteria increases multiple fold. I would say, a good starting point is to have a minimum allocation of 5% of stock investment (ie if you do not have the conviction to invest at least 5% of your capital, you should not invest in the stock).

2 Likes
3

I am still figuring out capital allocations as still pretty new to the market

I have decided that I will only buy in 1 percent of capital chunks up to a maximum of 7 percent.

As I am focusing more on small cap investing, I would like to see the story playing out qoq and yoy before allocating higher capital.

Further, I invest in monthly chunks rather than as a lump sum due to nature of my earnings. Investing 5 percent in a go will be difficult due to that reason as well.

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4

Great stock selection but if you could write the thesis behind the stock selection will be helpfull for others to assess your portfolio.

5

So I have a single point criteria for selection i.e. the Company will grow its earnings at 20+ percent over the coming few years.

Everything else is secondary. It’s only when I anticipate that the first thing will happen, do I look at other criteria such as corporate governance, debt, valuation multiples etc.

I’ll give a slightly more detailed thesis on the individual stocks and why I think they’ll grow at 20+ percent in some time.

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6

Dear Tenthman,

Please guide from where to check the future 5 year earnings of a stock…

Regards