Good to hear form you @Gaurav_Bhandari. Apologies for not being able to write here more frequently – a lot has been happening on the personal and professional front. I’m in the middle of moving countries – my wife and I are relocating to the US to work there for a few years and we’ve been completely subsumed by it. I’ve been posting brief updates on twitter but a detailed post here on the portfolio positioning is long overdue. Later this week perhaps.
On Kotak, I took profits sometime in May when the uncertainty of SVB et al had started waning and had added those funds to higher beta microfinance names like Satin and Spandana. It was more of a macro call – microfinance was coming out of a few bad years with rock bottom valuations, and there were management efficiencies in these two players, making them kind of turnaround and special situation plays. Essentially in a roaring bull market, I erred on the side of greed and went with the lighter boats which rise the fastest when the tide is high. It has worked out well so far, but there will come a time when the risk-reward of holding them will not be favorable and I may decide to sell and buy Kotak or HDFC Bank then.
I am unnecessarily aggressive sometimes, but that’s just me. Kotak in my view at these levels is an excellent long term buy with a peaceful 15-17% compounding, with the potential to go to 20%+ too if foreign money starts flowing in once the succession story is resolved.
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