Atirek portfolio

Thanks for recommending this book. Will try to go through it.

One small query- if u get 2 ideas every year, then what would be your number of stocks within 10 years

Before understanding it, you need to understand why I have written the reminder for myself.

1. It is to remind me not to go down in the quality curve.
2. I get a lot of force to act, specially considering new capital that I am get is substantial comparison to the invested amount. Writing down this principles helps.
3. There is a lot of greed to earn good cagr and writing down these things, help me to control the behaviour.
4. Based on past records, I don’t get good stocks to invest every month and hence need to divert my energy and time to something productive like coding and reading.

Failing to do so will lead to many stocks in the portfolio.

I also pay a lot of heed to the terminal value of the stocks while deciding to invest in it.
To increase the terminal value of the stocks according to me

1. The initial growth rate should be very good which is the case with hospitals, crams(in india), cloud, ads and ecommerce.
2. Chances of being obsolete is less in next 10 years like ecommerce, cloud, ads, hospitals and pharmaceuticals(playing through crams)
3. Industry size should be huge and growing.
4. The company should be market leader as in most of the industry there is some benefit of scale.

This is over above the general list of seeing the debt, management, etc.

As you can see that I have invested in

1. NH, HCG which are hospitals(market is huge, brand and economies of scale). Might sell HCG though as I don’t feel it is cost effective and has brand. Also its allocation is lowest.
2. Syngene which have average 6-7 year contracts
3. In cloud computing(large capital needed, economies of scale and switching costs) have three major players
4. ecommerce like Amazon and Alibaba(economies of scale needed). It is same as retail as written by Pat Dorsey.
5. digital ads company like google (switching costs and economies of scale)
6. maharastra scooters(considering the dividends that I will get when growth will falter due to 80 percent discount).

Though, just to keep the number of stocks limited, I tend to sell as I can not track many stocks.

As suggested by SOIC and many others will not hence like to keep more than 15 stocks.