Sharing my portfolio and requesting feedback/critique. I will update this thread when I remove/add any new stock. I also have mutual funds from PPFAS and Quantum, but I am not adding them here.
Stocks as of Feb 8 2020:
- Facebook (US) - 29.78%
- Google (US) - 15.18%
- Syngene - 14.89%
- ITC - 14.22%
- Thyrocare - 12.35%
- Cera - 7.75%
- Fiverr (US) - 4.83%
- Tracking positions - 1%
I invest in companies with high ROCE, high FCF, strong balance sheet, non-cyclical, relatively not very expensive companies that can grow at atleast 10% long term and have trustworthy managements. I don’t mind a very concentrated portfolio. My aim is to further reduce the companies in my portfolio by cutting out the non-performers. Some of positions like Facebook and Google have become large because they have performed exceptionally well and I kept deploying more capital as they did.
I understand consumer stocks and technology stocks. The reason I don’t invest in financials is because I don’t understand them. I don’t like to add/remove new names often. The only fresh position I’ve added in the past year is Fiverr after it IPOed.
Rationale for investment
Dominant player in social media, growing revenues at 25-30%, super high cash flows, super strong balance sheet with $50 billion of cash, lots of opportunity to further grow with e-commerce, payments, further monetisation of Instagram, WhatsApp. I have extremely high conviction on the core business and am slowly adding more every month. Regulation risk remains.
Growing at 20%, high FCF, strong balance sheet with $120 billion of cash. Controls Android so has very good distribution for products. Google products are dominant in the market.
Top pick to play the CRAMS theme. I think the story will be similar to how TCS played out.
Super high cash flows from tobacco business. Building FMCG brands is a long game and I am prepared to wait for it to play out. Everyone seems to be factoring in the worst. I find the valuations attractive.
Great growth even in tough times, extremely high cash flows, cash being returned to share holders in the form of dividends and buy backs while still growing the business. Picked up stake at lower levels, now averaging up.
Leader in sanitaryware, moving into other home furnishing products. I’m waiting for real estate to come back to normalcy to see if growth returns. Not adding any more before that.
This is a micro cap startup that recently IPOed. Growing at 40%, gross margins of 80%, invested at P/S of 4-5, improving EBITDA margins. I feel the product market fit is very strong, with gig economy poised for huge growth. Initial investment as a %age of PF was way lower, the stock price has shot up quite a lot recently. May add capital slowly if results continue to be good.
Fully invested and keep deploying cash flows from other sources every month. Requesting others to share their views.