Mann’s Portfolio

Hey Thanks for Your Inputs

So the above portfolio is my personal Portfolio, It excludes Family Portfolio
And for me I have seen Certain Small caps Like Fineotex Chemicals, Pricol, Carysil, Garware Hi tech In my Family portfolio been 5x to 10x That has formed biasness in my Mind that Micro Caps with good business Model and Good Management Can shape our portfolio in long run to provide 25%+ IRR

Concentration of good business is what I have learnt From @sahil_vi , Sizing the bet Appropriately is one of the thing i have missed in the past due to which even though the Above mentioned 3 Stocks became 5x to 10x it didn’t Move the whole portfolio Quite a lot
So I decided to Size the bet Appropriately, but i take initiative to make sure the Position is as per my thesis
I have even Met the CFO of 1 of the above company Just to ensure weather the understanding of business and its tailwind prediction of mine was correct or not

For SKP Bearings Question

below is the picture of How the valuee chain of Bearings work

Pic Courtesy – Caprize Investment Twitter account

Now after understanding above lets compare the margins of Bearings manufacturer

Schaeffler –

SKF –

Timken –

NRB Bearings –

Even though NRB Is close Competitor, It also manufactures the bearing as whole
Kind of Fully forward Integrated and hence the margins gets quite compressed in the range of Bearings manufacturer
i.e. In the Range of 17-18%

So to sum up the above
SKP doesn’t Manufacture the whole bearings but the component of bearings and hence the margins are quite high there
It’s Kind of the Proxy Play on Bearings Industry,
The Company that Manufactures the bearing Doesn’t have the operations under one roof
It might happen that what you are looking at and comparing is the margin of Bearing manufacturer (Last in value chain), With that of the Components manufacturer