Update after 2 months. Since the last update my portfolio stocks have suddenly started getting love from all over places:) The situation a couple of months back was exactly opposite when the same set of stocks were getting hammered mercilessly. Though business fundamentals did not change then and now. In fact, fundamentals have improved for a few businesses in my portfolio stocks. Portfolio big winners like Mold-tek packaging. PI Industries. Deepak Nitrite, Polycabs, Pidilite, Kajaria Ceramics, Bajaj twins keep on winning even in this tough market. Cherry on the cake is manageable/less beta/volatility which is unmatched within developing/developed markets.
I also invest in the US/International/Developed market. But I can say from my experience that it’s near impossible to make money in a developed market just buying and holding good stocks for the long term without bearing gut wrenching beta/volatility. Take for example businesses like Shopify/Zoom that were darling during pandemic (even before pandemic), now stock prices for these businesses are hitting new low (down approx. 80% from all time high) almost everyday though they are still growing topline/bottomline high teen percentage YOY. Whereas my India portfolio company like Deepak Nitrite/Apl Apollo tubes reported profit degrowth but stock price hardly moved in downside. To same analogy, pandemic darling like Vaibhav Global should now be trading as two digit stocks had it traded like US market valuation:)
All I am trying to convey is that if one can concentrate a portfolio around well established known businesses then it seems to be a little easier to make money with manageable volatility from the India market than the developed market. But one downside is that as these businesses remain pricey, value investors get a very rare chance to load up on good businesses in the Indian market, whereas such opportunities are abundant in the US market all the time. Just for sake of data, Apple’s 3 yrs beta is 1.23 whereas Asian Paints 3 yrs beta is just .60. But in the same period, Apple returned 230% whereas Asian Paints stock appreciated 120%. Obviously the Indian market should be embraced by investors who have already made money from their own profession and want to grow the pie with very little hassle with almost 18-20% CAGR just investing in quality and so called expensive stocks for the long term. Not bad if one is already a millionaire:)
Made a couple of changes since the last update. Sold Havells India (held it almost 3 yrs, with 75% gain, did not like severe margin compression in the latest quarter) and replaced it with Titan. Replaced Delta corp (flat gain) with Mas Financial which I bought again after selling it just before pandemic lockdown. Bought more Dr. Lal Pathlabs as well. Added Dixon Tech and Indiamart to portfolio. These stocks could be another great compounder in making.
Portfolio Performance:
1 year: 2% VS Nifty: 7%
3 Year CAGR: 28.1% VS Nifty: 17.6% (Return got significantly boosted when I only started buying expensive quality stocks since 2019:))
5 year CAGR: 18.1% VS Nifty: 12.73% (Return is affected due to bad bet on all sort of money loosing stocks/strategies like PSUs/Infra/Value/Low PE/Contra bet in 2016-18 period)
Stocks Buy Price Gain
APL Apollo 933 14% → Compounder
Asian Paints 2293.30 51.86% —> Compounder
Bajaj Finance 3840 90% —> Compounder
Bajaj Finserv 9583 70% —> Compounder
CarTrade Tech 1175 -46% —> Bet on new digital tech
Deepak Nitrite 334 511.11% —> Compounder
Dixon Tech 3966 1% → Compounder in making
Dr Lal Pathlab 2332 5% → Compounder
Granules India 85.90 264% → Compounder
Hdfc Life 651.66 -11.51% —> Compounder
Indiamart 4601 -6.60% —> Compounder in making
Intellect Design 676 -9.72% → Leader in IT Product Category
Jubilant Food 1945.26 53.32% —> Compounder
Kajaria Ceramics 586 102% —> Compounder
Mas Financial 534.80 22.58% —> Compounder
Mold-Tek Pack 259.26 275.59% —> Compounder + Div Growth
PI Industries 653 406.30% —> Compounder
Pidilite 328 729% —> Compounder
Polycab 999.87 142% —> Compounder
Relaxo Footwear 747 34% —> Compounder
TCS 1298 160.68% —> Compounder
Titan 2044.53 19.37% —> Compounder
Vaibhav Global 81.79 292% → Compounder, will add more
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