Breeze Portfolio is a new portfolio, on the lines of a coffee can portfolio, for those who want to invest some amount for the long term (10+ years). The strategy will be to Buy a basket of 15-20 stocks and forget it for 5 to 10 years. This portfolio will have no churn, shuffling of stocks, profit booking, stoploss, etc. Once invested, job is done.
Breeze Portfolio is our version of the Coffee Can portfolio – a concept by Robert Kirby of Kirby Capital. The basis for selecting the companies is 11 years of financial performance. Such a long period covers a company’s performance across different market cycles and is a good estimate of growth in demand for a company’s products and the management’s efficiency to deploy capital.
We have back-tested the Breeze Portfolio from 2002, using fundamental data since 1990. The track record of the Breeze Portfolio is given below:
The Breeze Portfolio has out performed the Nifty index in 15 out of 16 years and the margin of out-performance is good. Since there is no churn on the Breeze Portfolio, the expense ratio is very very low as you save money on brokerage, transaction charges and taxes.
Is it compulsory to hold the stocks for 10 years?
Ideally – Yes. However, any holding period above 5+ years is will be a decent enough period to hold these stocks. The longer you can hold till 10 years, the better.
Should I replace the stocks next year?
In case a stock doesn’t make it to the next year’s Breeze Portfolio, then you still continue to hold it. Once an amount has been invested in the stocks, there will not be any churn.
Should I invest a lumpsum or do a monthly investment?
If you have a lumpsum amount ready, then invest at once (or maybe over 2-3 months). If you do not have a lumpsum amount ready, then you can do a monthly investment spread over 12 months.
Will there be a new Breeze Portfolio every year?
Yes. However, if you have invested in this year’s portfolio then it is not compulsary to invest in the next year’s portfolio. There will not be any affect on the returns if you do not invest in subsequent portfolios.
How do I get the list of stocks?
You can pay Rs 999 through this link: click here . Once we receieve the payment, we will send you the list of stocks by email.