Dear @harsh.beria93 & @rajanprabu
VFC seems to be an interesting stock to analyze. However, looking at the chart, I feel that market might be knowing something that we are probably overlooking. Other than, D/E ratio going to 2X from 0.5X, I can’t find anything bad so for.
Question:
Thanks as always
Bala. P
I had mentioned it in my note, they had acquired Surpeme brand for $2bn in 2020.
About maturity profile of debt, they have refinanced via green sustainability loans in past few quarters.
If this is not speculation, then what is? 
@harsh.beria93 How does the change in debt taxation figure in your future international investments ?
The change in taxation to income tax slab & not as capital gains looks to me like a significant deterrent for future investment.
Please let us know your thought process.
Hi, I am a non-resident Indian living in Switzerland, so these tax rules don’t apply to me.
If I was investing from India, I would have still diversified globally because of the massive opportunities abroad. For e.g. last year I was buying InMode which is an amazing business (80%+ gross margins, 40%+ EBITDA margins, 40%+ ROIC) growing at 25%+ rates and I was able to buy it at 10x PE. There is not a single business in the Indian listed universe which has these kind of risk reward.
Similarly, I bought Markel (speciality insurance co) at book value or the largest German AMC business at negative enterprise value. These kind of opportunities are just not available in India and I am happy in participating in these even if I have to shell out higher taxes. Hope this clarifies my thought process 
INMODE is also my largest holding. HPQ is another stock which I added at <10x of FCF ( FCF > $ 3.5 bn per year and MCap< $30 bn.
As of today, I switched from Phillip Morris to British American Tobacco. BAT has much higher dividend yield and almost the same business profile as Phillip Morris.
In terms of EV/sales, both have traded at similar multiples except since 2020 when valuations have diverged. I attribute this partly to problems in UK and general risk aversion of investors towards UK market.
On dividend yield, BAT now trades at close to 8% yield.
Updated folio is below and cash remains at 18%.
| Companies | Weightage |
|---|---|
| AB InBev | 5.00% |
| Berkshire Hathaway | 10.00% |
| Disney | 5.00% |
| Fairfax India Holdings | 10.00% |
| Markel Corporation | 5.00% |
| BRITISH AMERICAN TOBACCO | 2.00% |
| Uber Technologies Inc | 2.00% |
| UBS ETF CH-SMI | 5.00% |
| Vanguard Emerging Markets Stock Index Fd | 10.00% |
| Dropbox Inc | 2.00% |
| Netflix Inc | 5.00% |
| Suzuki Motor | 5.00% |
| Starbucks | 5.00% |
| Inmode Ltd | 2.00% |
| DWS Group GmbH & Co. KGaA (DWS) | 2.00% |
| 5.00% | |
| VF Corp | 2.00% |
| Cash | 18.00% |
