Dhampur Bio’s decision to postpone the ethanol plant is the right strategy as Govt is not increasing the ethanol prices and sugar prices are going up. As DBOL cane availability is increasing they have increased cane crushing capacity for making sugar. They are sitting on surplus cash as ethanol capex was postponed.
Their sugar recovery rate will be better (like in the case of Balarampur). DBOL will be the best performing sugar company due to the right capex and cane strategy.
Sugar companies in general will produce less ethanol this year. DBOL revenue from ethanol will be <10% this year.
Posts in category Value Pickr
Sugar Cycles: 7-8 years of losses followed by 2-3 years of super gains! (06-12-2023)
B’s Portfolio – Steady Wealth Creation (06-12-2023)
Started adding Linc.
After Pentonic they have seen very decent growth. With current pens at 10Rs and their vision to increase this to 20 and above and constantly growing the touch points should help them grow decently.
Their Plan also remains to strengthen Pentonic and focus on 10+Rs pen
Smallcap momentum portfolio (06-12-2023)
Hi### Viswanath B,###
Yes, I too sell my profitable ones, once they get flat or I see a better opportunity.
I do not restrict myself to index stocks, but If I get an opportunity in large-caps, I take it. I screen >500 cr m-cap.
For selling, I can sell as quickly as less than 3 months if the stock falls below 50 DMA. Those holding above 50 DMA are mostly profitable (Even Multiples).
So far I believe there are abundant opportunities once you develop a system. Tuning the system is more important than fine-tuning it.
Our ability to convert information to opportunity also compounds with time!
Warm Regards
JAI
Praveen’s portfolio (Coffee Can) (06-12-2023)
Thanks for this, this sounds very useful. I will use it and mention my performance numbers in the future posts.
Praveen’s portfolio (Coffee Can) (06-12-2023)
- It is true that I have large number of stocks, however my top 10 is way bigger positions compared to my bottom 10. I stopped putting money into some positions when I learnt something bearish about the company or if it’s overvalued.
- I want to sprinkle water in the garden, I don’t want to sell for decades hopefully. This is the actual coffee can approach. I don’t trust my selling process.
- Again selling is hard, people don’t sell well. Buying is just the start, holding onto names is what makes you rich. Take any good investor, they have held names for decades.
Great articles to read on the web (06-12-2023)
Poor Charlie’s Almanack: The Essential Wit and Wisdom of Charles T. Munger (stripe.press)
Free to read (and listen)
Praveen’s portfolio (Coffee Can) (06-12-2023)
Although I have a lot of holdings, my top 10 is close to 40% of my portfolio. The reason why I don’t want to sell is, selling is really hard. There could be future 10-100 baggers which may be overvalued today, but will compound. Like Charlie Munger says “Don’t interrupt compounding”. I don’t think any of these are super overvalued. Can you point out which ones you think are overvalued, I am happy to re-evaluate the positions, likely I will still keep them though.
Praveen’s portfolio (Coffee Can) (06-12-2023)
I thought buy transaction is to be denoted as negative value and sell transaction to be denoted as positive value. This is how I have calculated my XIRR…
Smallcap momentum portfolio (06-12-2023)
@jaimathoda good to see that you have developed a system. One difference that I see, is that I go by rules based investment, nothing left to discretion. If a stock has to go out, it will go out (even a profitable one) because there is a better opportunity.
All the stocks that I have this in pf are from a Nifty Index. As the index gets rejigged on a regular basis, some filtering already gets done by NSE.
Munger (1200 page compilation) (06-12-2023)
Continuing the discussion from Multi-Disciplinary Reading – Book Reviews:
Though this is not a standard book. I stumbled upon this resource which contains Munger’s letters to shareholders and analysis of companies.
I was always impressed by Munger’s thought process and felt those who prefer value investing might benefit from this pdf.
Note: this is my first post, so please let me know if this is not the right place to post.