I am 25 years old and ~1 year old in terms of direct equity investing. Have been investing in mutual funds since mid-2018.
Have an economics/finance (masters in economics) background. Joined forum in may last year and have ~6d reading time on the forum.
Rationale/Expectation for posting here -
- To solicit feedback on the portfolio/philosophy. Specifically, every investment that I have made may not follow my written down philosophy due to lack of knowledge, setting up of wrong expectations and behavioural biases. any feedback along these lines will be awesome.
- Force me to solidify the process/philosophy of stock selection.
- To contribute back in a small (I know that I cannot add much value to already super-rich forum) way to the forum.
Goals for investing-
- Learn as much as possible about businesses. (this is vague, could not think of anything better)
- Generate some alpha over the market and avoid loss of capital. Will not be tracking returns in a very detailed manner.
Ideal Process (satellite portfolio) -
- Get an idea. Read as much as possible about it (forum/tijori/blogs/reports, etc.)
- Start with tracking position.
- Create/borrow key monitorables (KMs) and track accordingly. Currently in process of doing this for many stocks in my portfolio.
Some open-ended stock selecting/filtering ideas (at risk of sounding amateur) -
- Co. in process of brand building with a good track record of execution. e.g. ITC (FMCG brands), KRBL (India Gate to other related healthy food brands), Polycab (FMEG B2C initiatives)
- Niche tech. co. with some moat, eg. Indiamart (Network Effect)
- Tailwind sectors (mostly identified via forum)- Pharma (Laurus, Alembic)/Specialty chemical (Aarti)
- Diversify by adding leaders/well-managed co.s from multiple sectors. (Airtel, TCI Express, Heidelberg, HDFCLife, Bata, HDFC, Kotak)
Two broad philosophies, not very strict line differentiating them -
Core/Coffee Can - Minimal tracking, buy on dips depending on liquidity. No selling ad infinitum until something changes really fundamentally (if this happens, give <=3 quarters for explanation/resolution). A typical stable growth over value kind of portfolio.
Satellite - More actively managed, No selling until some KMs remain undelivered or something changes fundamentally at the company level (not at the sector level, broadly avoid typical cyclical/commodities), give <=1 quarters for the explanation/resolution. High growth at reasonable value, can try averaging up.
Portfolio as on today -
|Instrument||Avg. cost||LTP||Net chg.||Percent (LTP basis)||Comments|
|INDIAMART||2748||7450||171.1%||16.2%||Network Effect Moat, Subscriber growth, Acquisitions/integrations|
|ALOKINDS||23.98||22.75||-5.1%||7.5%||Turnaround, management commentary|
|POLYCAB||688.97||1246.4||80.9%||6.2%||FMEG, B2C and exports|
|ITC||191.39||201.5||5.3%||4.7%||FMCG - margins and market share, Capital allocation|
|ASTEC||1105.53||1278||15.6%||3.9%||CRAMS, China +1, R&D, Promoters|
|KRBL||246.5||245.05||-0.6%||3.6%||New FMCG brands, Export growth, legal cases|
|KSCL||565.72||535.15||-5.4%||3.4%||Cash rich, diversified seed play|
|IDFCFIRSTB||31.3||44.4||41.9%||3.4%||Retail banking (assets and liabilities) with advanced underwriting for the unbanked, good management|
|AARTIIND||960.58||1280.4||33.3%||3.3%||Speciality chemical & Pharma tailwinds, Highly diversified, almost coffee can|
|TCIEXP||734.72||990||34.7%||3.2%||Asset light logistics player - sectoral diversification bet|
|APLLTD||924.33||1092.5||18.2%||3.1%||Pharma tailwind, R&D, USFDA compliance|
|BHARTIARTL||553.44||540.25||-2.4%||2.7%||Telecom - Sectoral diversification bet|
|CHAMBLFERT||160.37||240||49.7%||2.6%||Sectoral diversification bet|
|HAPPSTMNDS||328.87||345||4.9%||2.6%||Digital focus, SaaS, a proxy for tech in education, travel, etc., quality promoter|
|CAPLIPOINT||374.75||499.95||33.4%||2.3%||Injectables in the US, replication of high ROE/ROCE model in new EMs|
|IEX||193.59||223.05||15.2%||2.3%||Regulated Monopoly with some tailwinds|
|HEIDELBERG||212.26||235.55||11.0%||1.9%||Cement - Sectoral diversification bet|
|ICICIGI||1164.59||1606.5||38.0%||1.8%||Insurance - Sectoral diversification bet|
- Currently, too many companies, giving almost 2-3 hours daily for reading.
- Some stocks do not adhere to above ideas like Alok, it is a turnaround, will be holding these kinds of stocks and monitoring the management-commentary/results closely.
- I understand that most of the portfolio is green because of the bull run in the market, but even if half of these returns are sustainable will be more than happy.
- Will start adding a bit more detailed rationales in some time.
- Some ideas may be contradictory, incomplete or completely wrong, open to all kinds of suggestions/ideas.
- Other investments - Mutual funds (SIPs), ESOPs, FD, PF etc. The above portfolio is ~20% of all investments
Disclaimer: This is not investment advice, only personal opinions.