Ravi's Portfolio - Log and Review

raviinvestor October 18, 2021, 3:36pm 1

Portfolio_Snapshot1078×666 44.2 KB

Above is snapshot of my Equity portfolio.

Objective

• To keep these for long term (10 yrs).
• Medium to low risk portfolio
• To keep 10-12 stocks
• One MF - Parag Parekh is for diversification purpose

1 Like raviinvestor October 18, 2021, 3:37pm 2

NOCIL and Phillips Carbon - Stocks are for short term and plan to sell soon.

Surender October 18, 2021, 4:00pm 3

Ravi - For someone to comment, do share your thoughts around:

1. Investment Goal
2. For each business, What is/are the:

• Rationale
• Key Risk
• Key Monitorable

3. What diversification MF (indirect equity exposure) provides?

1 Like raviinvestor October 18, 2021, 4:10pm 4

Thanks for checking.

1. Investment Goal

Wealth creation in long term with decent (expectation 15% CAGR)

2. For each business, What is/are the:

• Rationale
• Key Risk
• Key Monitorable

Broadly selected stocks with some kind of moat. Prefer consumer segment, B2C.
LTTS - very few IT companies are in real R&D. LTTS is one of them, and I feel this business can grow exponentially if they are able to stick to plans.

Risk - valuations

3. What diversification MF (indirect equity exposure) provides?

Since I plan to keep 10-12 stocks, which I can monitor closely. This makes overall portfolio as concentrated. MF added to avoid further addition of stocks in portfolio. Also this investment goes through SIP, so not tracking valuations etc.

Surender October 18, 2021, 5:06pm 5

On risk front, I was thinking business risk but you listed risk relevant to your expected return.

NOCIL & Philips Carbon - No comments as you plan to flip them.
MF - No comment.
HDFC Life - No competence. No comment.

/Good Business - I think Yes for all except ITC which is too diversified to focus & has huge float of equity capital.
/Sector wise - Diversified.
/Time Horizon - Reasonable for equity investment.
/ Expected Returns - Reasonable from equity investment.
/Good Investment considering your goal of 15% CAGR - As of now, growth expectation from all these names (except ITC) is very high, reflected in elevated P/E. If the market’s enthusiasm sustains for these names, you could expect to have capital gains that mimic the earnings growth.

Below aspects need deep work (quantitative, qualitative and psychological) at your end to evolve a plan that addresses :

• If market nosedives-a very likely scenario considering your time horizon- due to ‘n-1’ reasons & P/E as well as portfolio returns scale downwards due to such an external shock, how you would act.
• What will keep the market’s excited about these names to keep P/E at similar levels till you plan to sell?
• What are the levers for each story to achieve an earnings growth of ~ 25 +% CAGR (cushion for P/E derating before expected returns become unachievable) on long term basis?
• What are the key risks to each story to act/react/ignore?

Note: Not an RA/IA and not an investment advice. Just personal opinions. As I do not hold any of these names, you shall discount my opinion accordingly!!!

2 Likes raviinvestor February 11, 2022, 1:18pm 6

Here is latest portfolio, after clean-up. 10 stock portfolio.

image1085×518 45.6 KB

1 Like Shakti_Srivastava February 19, 2022, 12:06am 7

Hi…any changes in the portfolio

raviinvestor February 19, 2022, 4:46pm 8

No further changes. Plan to keep 10-12 stocks portfolio for long term, with minimum churn.

raviinvestor March 4, 2022, 3:46pm 9

Entered Dr Lalpath Labs and topped up few others in this downturn.

Portfolio looks like below now -

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Mudit.Kushalvardhan August 29, 2022, 2:40pm 10

What about PPFAS Flexicap?

raviinvestor August 30, 2022, 3:51am 11

I have reduced SIP amount but continuing in PPFAS Flexicap. Currently only tracking stocks portfolio.

Sold Dabur and spread that amount to other stocks.
Current portfolio - 10 stocks

image1086×504 33.5 KB

2 Likes navvod August 30, 2022, 8:57pm 12

Don’t you think hospital businesses like Narayana Hrudayalaya or HCG or Max Healthcare etc would have been better over Diagnostic business like Dr. Lalpath Labs ? Obviously, I am just trying to understand your logic nothing more

raviinvestor September 1, 2022, 5:06am 13

I have not compared Dr Lal with Hospital businesses. In Diagnostic business Dr Lal is leader and I feel they will continue to dominate this space. Added this in small proportion mainly due to price correction. Currently in watch mode and will decide more steps after seeing it’s business performance.

raviinvestor December 8, 2022, 11:53am 14

Updated portfolio, not much change though.
Reduced Asian Paints.
Added BCL Industries.

Instrument	Weight	Comments
Titan	16.52	Core portfolio for growth
United Spirit	15.65
ITC	15.15
HDFC Life	11.8
	59.12

Instrument	Weight	Comments
Pidilite	8.82	Core Portfolio – Stable compounder
Nestle	5.58
Asian Paints	2.88
	17.28

Instrument	Weight	Comments
IEX	7.98	Satellite portfolio – expected more growth, little risky but fundamentally strong
LTTS	7.36
Dr Lal PathLabs	6.26
BCL Ind	2
	23.6

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2 Likes Mudit.Kushalvardhan December 8, 2022, 5:31pm 15

What about your PPFAS 5% ?
You sold it or forgot to mention in pie-chart?

raviinvestor December 9, 2022, 4:24am 16

We have a family portfolio of Mutual Funds where me and my wife continue to SIP. This is primarily to ‘expected expanses’. I feel more comfortable selling MFs for needs than stocks.

We have below MFs -
Built required corpus and no regular SIPs

• UTI Nifty 50
• DSP Nifty 50 EQ Weight
• UTI Nifty Next 50
• Mirae Emg Bluechip

Regular SIP in below Funds currently

• PPFAS Flexicap
• Axis Smallcap
• DSP Nifty Midcap 150 Quality 50

1 Like Mudit.Kushalvardhan December 9, 2022, 5:04am 17

I have most of your funds…
Uti Nifty 50
UTI nifty next 50
DSP midcap 150 quality 50
PPFAS

Just curious…
How much % of your portfolio in mutual funds?
Also what is your experience about DSP equal weighted nifty 50? Is it too different from UTI nifty 50?

1 Like raviinvestor December 9, 2022, 5:11am 18

Currently 60% of total portfolio is in mutual funds. These are mainly goal specific and for expected expenses.

Direct stock portfolio is 40% currently, but my plan is to make direct stock weightage more, upto 70% and keep MFs at 30% in next 4-5 years.

Purpose of both are different. Direct stocks are mostly for growth (with risks) and dividend income for future, say after 10 years or so. Prices of stocks doesn’t matter much for my investing purpose, as long as fundamentals are intact, i don’t plan to sell much.

2 Likes raviinvestor December 9, 2022, 5:13am 19

About EQ weighted fund - I find this to be little better than plain index fund, in long term.

Mudit.Kushalvardhan December 9, 2022, 5:14am 20

Very apt strategy…All the best.

1 Like