I have shared my thought process on allocations before, you can read more here.
Also, this debate about diversification is rather meaningless. Our time should be spent more on improving our understanding about businesses or in formulating new investment strategies. There are people who have built meaningful track records with 5 and 5000 stocks, choose anything which resonates with you.
Also, given that I am running a long only folio, I cannot control absolute drawdowns. If market goes down, my folio will go down with it. However, I can control my own allocations on stocks on the basis of current risk reward and try to minimize mistakes.
Hi Ravi,
I feel its wrong to assume that lead acid batteries is a decaying industry. If we look at underlying industry trends, lead acid batteries are still growing volumes. Any my thesis with Amara Raja is that their margins will improve with lead prices coming down as their competitive positioning is the same (or even stronger) than the case 5-years back. I have shared my thoughts at link below.
