Q1FY19 – Portfolio Performance

In this post, we highlight the performance of the portfolio for the quarter ended 30th June, 2018. We document our portfolio performance on a quarterly basis for the benefit of our readers and those who are interested in knowing the performance of our advisory service. This post focuses solely on the performance of stocks and not the company results. Performance Our portfolio has under-performed the Nifty 50 (Total Returns Index), by delivering a +1.39% return against the Nifty 50 TRI’s +6.41%. While the quarter was a great one for the largecap indices, the small & midcap indices performed poor by delivering -2.97% and -6.94% returns respectively. We have out-performed both these indices by a convincing margin. The strongest performing stock of our Portfolio was Tata... Read Full Article

Breeze Portfolio – Buy and Forget – Coffee Can

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 fr... Read Full Article

Q4FY18 – Portfolio Performance

In this post, we highlight the performance of the portfolio for the quarter ended 31st December, 2017. We document our portfolio performance on a quarterly basis for the benefit of our readers and those who are interested in knowing the performance of our advisory service. This post focuses solely on the performance of stocks and not the company results. Performance Q4FY18 was a wild quarter for our portfolio. We lost ~ -6.36% on the portfolio against a – 3.96% fall in the value of the Nifty index between 29 December 2017 and 28 March 2018. This was an under-performance of 2.4% and this is first quarter of under-performance from our side. For new investors, the allocation to equities is 45% to 50% and for those associated with us since end of 2016, the allocation is now touch... Read Full Article

PC Jewellers and More – Our Mistakes

In this article, we share our insights on companies which turned out to be bad investments and also the lessons learnt from these investments. PC Jeweller PC Jeweller has seen a massive wipe-out of shareholder wealth over the last few trading sessions. It was one of the biggest gainers for our investors, some of who were seeing a 10X return on their initial investment at Rs 47 to 57. Our new members had PC Jeweller from Rs 250 to Rs 350 post which we had stopped recommendation. PC Jeweller was trading at ~ Rs 600 just a few months back and today it is well below Rs 150 and their seems to be no end to the fall of the stock price. Fall of Shame We have exited the stock and the highest allocation to PC Jewellers was just 3%, we trimmed allocation continuously as the stock price star... Read Full Article

Lessons of Investing

Investing can be a rewarding journey if done the right way! Here we present 5 important lessons of investing which every investor should learn / be aware of. i) Start Early     The best time to start investing was yesterday. The next best time is today! The earlier you start, the better – Thanks to the power of compounding. Rs 1 Lakh invested for 10 years @ 15% per annum gives Rs 4.04 Lakhs Rs 1 Lakh invested for 15 years ~ 15% per annum gives Rs 8.13 Lakhs ii) Be Patient     While tracking your investments is necessary, letting daily news and doomsday predictions will only make you uncomfortable and impatient. The more you listen to BUY/SELL recommendations on TV; the more you will feel tempted to churn your portfolio. iii) Short Term vs Long Term     Do not invest yo... Read Full Article

The book values of PSU Banks

With share prices at a discount to the PSU Bank book values, these shares are generating a lot of buzz. Every time one thinks that the mess is clear now, new skeletons fall off the closet. Experts have been calling the bottom for PSU Banks from quite sometime now. Many are citing the huge discounts at which PSU Banks trade to their book values viz-a-viz their private sector peers. We had written about investing in PSU Banks last year: Should you invest in PSU Banks The recent scams and defaults have further sent the PSU Bank shares spiraling lower and investors see a good opportunity to buy into PSU Banks. Does it necessarily mean that PSU Banks are a valuepick because they are trading at deep discounts to their book values? This article addresses this point through historical facts and ... Read Full Article

Nifty Valuations – Special Report

In this report, we discuss the valuations of the Nifty index on multiple criteria. Also, we will highlight the consequences of rising bond yields and inflationary pressure.After a cheerful 2017 and a rocking January 2018, the first week of February 2018 has been a nightmare for investors. Though the index is down by ~ 8%, quite a few stocks have fallen sharply from their 52 week highs. Stocks like PC Jeweller, Somany Ceramics, etc have fallen by more than 25% as stock markets across the globe enter a bearish phase. In general, the fear of inflation, higher interest rates, falling bond prices and rising yields have taken away the valuation comforts which equities were enjoying. Low rate of growth in earnings will be a cause of worry for most investors. We try to understand the index valua... Read Full Article