Portfolio
The embedded Google Sheet is self explanatory.
Though we started investing before 2010 we have kept accurate data only from April 2015 onwards.
This is neither audited by anyone nor this is a suggestion to invest in these stocks.
We are complete amateurs.
This is a private portfolio. Do not construe this as investment advice.
hey Deepak, Thanks for sharing your pf. Just curious would you be looking to make changes in your direct equity (core holdings - India) especially given the fall?
ReplyDeleteHi. As per my money management rules I have reduced some positions and got rid of small positions. But I don't think I will be exiting yet. Fundamental earnings havebhave impacted but for how long I or others haven't been able to figure that out.
ReplyDeleteHey thanks for sharing your portfolio. We have a lot in common.
ReplyDelete(1) Do you still have conviction for Bajaj Finance?
(2) Which brokerage service you use for investing in US equities?
Thanks
Hiren
Hi
ReplyDeleteThanks for your comment. Please don't take this as investment advice.
1) In my discretionary portfolio I continue to hold Baj Fin. Though the business has tremendous headwinds in the short to medium term.
2) I would suggest Interactive Brokers if you are based in India. Else look at Indian MFs investing in US also.
Regards.
VST industries u r holding only small position..
ReplyDeleteYes we do hold it but not a significant position as of end of August 2020.
DeleteHi Deepak, Thanks for sharing, do you believe that the upside in mid cap IT is capped ( persistent and NIIT exits)? Also, curious on exiting castrol and Kaveri at a loss? Appreciate insights. Thanks
ReplyDeleteOur IT picks were pure trading bets. Both of us do not have knowledge of IT industry. Sorry.
DeleteI'll take the question on two others.
DeleteKaveri - pure trading bet. Cut losses quickly
Castrol - Though an excellent company we think we committed a mistake in investing in this (we started building a position). Castrol does not have avenues to reinvest capital we think.
Hello Deepak/Rachita, what prompted you sold so many positions in SEP 20, US elections and trying to stay light? That's a hell a lot of selling in a month.
ReplyDeleteMainly to move into cash and concentrate on few core pickings. If you see all the ones sold never were in our core portfolio. Some were even trading bets. We have exited entire pharma barring 3 holdings Divis, Alembic and Abbott (more like an FMCG in our view).
ReplyDeleteNone of this stock advice as usual.
Did I read that right? PF is up 57x from 2015? Thats More than double every year!!
ReplyDeleteRead the full paragraph please. Both CAGR and portfolio value is mentioned.
DeleteHas this page been edited or am I missing something? I don't see any CAGR or portfolio value mentioned anywhere. Can you point me towards the CAGR value? I only see the expectation of 10%.
DeleteI think a 10% expectation post 2022 could be a tough thing to achieve. I would expect almost all of the developed world to have entered zero or negative rates by then. So inflation would at best average around 4% in India(oil dependence will go down globally, so demand for crude will vane and price will follow). So a 10% expectation is like expecting to beat inflation growth by a 150%. Its quite hard with that core portfolio, those companies are actually building in expectations of a few years in them and they are discounted. The only saving grace would be bonds going bust and people move more money to equity(TINA), we are already seeing that around the world, the only problem to this would be sky high valuation and no real fundamental basing for it. Eventually it would need to be popped.
We have moved content to a Google spreadsheet. The note on the Cagr is still there. As next step we will link the actual cagr on the Google sheet. There was confusion amongst a few readers on out total networth growth and cagr so we removed that paragraph.
DeleteOur goal is to stay a little ahead of the index with our core and non core direct equity (not etfs and MFs, which we use more as a savings tool).
I get your point of view on expected returns. But will stick to our process to find good businesses.
Great step ahead and Full marks for max transparency. I have a very dumb question. For me to actually invest a meaningful money into all these entities and also make a meaningful trade on the remaining names would mean I need to put up a capital for few crores. Is that how we should see this? If we have a minimal capital of less than 25L, how should we go about inspiring from this folio? Any thoughts on that.
ReplyDeleteThanks. When we started out we had only a few bets. Some went dud and some we continue to hold. I don't suggest you build a portfolio of many things. Try to build around a few large caps and index funds. And then expand from there. The lure of smallcap is quite dangerous to us small investors.
DeleteDeepak, your overseas direct equity positions and the ETFs (china, US, vietnam, singapore) - are these core holdings (like HDFC bank) or positional (like IDFC first, mayur uniquoteres)
ReplyDeleteAlso, these international ETFs you mentioned, you buy from interactive brokers? I read above that direct equity can be purchased with interactive brokers if one is in India but what about ETFs?
Hi Harish.
Delete1. Except S&P and Nifty all the others are positional. I use Index to force savings in a way.
2. I have Interactive brokers account but dont use them. Yes in IB you can purchase these. I believe there are more options now for us in India.
Thanks Deepak. So which platform, if not IB, you use for buying these ETF?
DeleteTwo of them. But they don't service in India. Saxo for US, China & Vietnam. And I have a 'demat' equivalent for Singapore.
DeleteAs mentioned in blog you follow strict asset allocation between Equity/Debt.
ReplyDeleteAs you have MFs/ETFs/Conc. Holdings/Stock Positions,
How you rebalance?
If you see as we have mentioned is that we calculate Indian Direct Equity + Foreign Direct Equity + Fixed Income as Total Capital Market Portfolio. We omit MFs/ETFs from it. Why? Two reasons: 1. It is very small (our top 5 stocks consist of over 50% of our networth actually for instance). 2. We just use it as a savings mechanism nothing else. We wanted to mention it for the sake of having all our holdings completely in one place.
DeleteRebalancing between equities and debt is a long topic. Please see the tab on money management.
ETFs/MFs I dont do anything. Its a forced saving that's all (US and India ETF & India MF only).
Sure, I will check. Thanks
DeleteThis comment has been removed by the author.
ReplyDeleteHi Deepak, great initiative with transparency. Some questions:
ReplyDelete- What is your India vs non-India holdings allocation? And do you measure CAGR in INR? [tricky thing for NRIs who arent sure if they will move back]
- When you say positional - what is the period you have in mind? (as I see you have stocks held since 2017 as positional)
- You seem to have booked many trades in Sep-20, and also Dec-20. How often do you review positional holdings and trade?
Hey. It's close to 60-40 I think in favour of India. And I do real time fx conversion. I have currency exposure to USD, SGD, SEK and a little to China and Vietnam (not much in these two). Just for tracking my script actually day end does this calculation with fx changes. I don't do any fx hedging. Don't have bandwidth to do.
DeletePositional is something which I don't want to call core that's all. Could be a month and even a decades (eg Biocon).
Yes I take short term trades also both on equities and FnO - index futures or stock options. But this is only India. Every week I review equity. And every night I review open FnO positions if any.
Hi Deepak,
ReplyDeleteGood initiative, found it useful. Qn - apart from the SIPs, how do you determine whether a particular stock/ETF should be Add or Hold ? And how do you allocate your monthly savings at any given point of time - distribute to SIP and Add status stock/ETF?
Hey Nikhil
DeleteSorry for very delayed reply.
Say if I earn rather my family earns a 100 rupee cashflow monthly. We usually make all requisite expenses at the start. And everything else gets deployed. We do not leave any cash for 'fun' sake. Say 20 goes to expenses which are recurring (rent, bills, food etc). then 60 goes to couple of liquid funds and 20 to savings account. We use that liquid fund for direct stock investment which is mostly discretionary and 20 in savings gets used for SIPs and a small EMI we have. In essence its like working capital management. In an ideal scenario we would like 100% of monthly cashflow to be invested in direct equities (minus the recurring expenses). Our SIPs are small as we are mostly direct equity investors. As these SIPs were started 4-5 years ago or more. Hope this answers. Let me know.
Thanks
ReplyDeleteHow is it that Asian Paints is not a part of your core? Any particular reason of plain valuation discomfort?
ReplyDeleteI sold it sometime in 2020. You can say so.
DeleteThanks for the blog. What is your view on holding companies? The question is in context of your core where you have HDFC Bank, AMC and Life, all are held by HDFC Ltd. Why not have HDFC in the portfolio which has HDFC in addition to the other ones.
ReplyDeleteAnd what is your broad stock selection criteria, if you can share. Regards, Vivek
Hi. First apologies for the very delayed reply. While it makes perfect sense to hold a holding company usually we have noticed a valuation premium is rarely assigned to it. It's the child companies which get the love of the markets and thus over valuation. When we invest we hope our each holding after day of purchase becomes a market darling and becomes severely overvalued and continues to be so. Provided it shows expected business performance.
DeleteWe are mainly growth investors looking at business quality, prospects and then lastly valuations. We don't have any special methods as such.
Regards
This comment has been removed by the author.
ReplyDeleteHi,
ReplyDeleteIt seems like you sold a lot of your US-based holdings at the end of last year, any particular reason for doing so?
Also, do you use any equity advisory services for stock ideas?
Hi. The reasons for selling was change of location and thus broker. We have been buying back some of the stocks. Also we used part of the funds to buy other assets (non equity).
DeleteWe are subscribed to only Portfolio Yoga for their Momentum Portfolio.
Hi, would like to know what you think of the following:
ReplyDelete1. HDFC AMC- Since you've been holding this stock since IPO, the returns currently are non-existent, how do you see the valuations/ earnings for the stock in the next 3-5 years?
2. HDFC Life- Similar question, specifically about valuations
3. ICICI Lombard- Any thoughts about this? Or about the general insurance industry in general?
4. RACL- What's the rationale behind partially/ fully exiting the stock?
1.2. AMC seems fairly valued. Life not so much. I intend to sell both in the near future.
Delete3. No not studying insurance as a sector anymore (selling HDFC Life)
4. Well the position grew too big for my liking and I needed cash for another investment. I bought when RACL was a 2 digit stock so have been lucky in that sense. I still hold it though at the time of this comment
sorry for the delayed response.