I am an NRI and just started my investing journey in India this year (from May 2023). My goal is to build a steady compounding portfolio with lowest churn possible.
Entry Strategy
I use a screener to find companies which have:
- Good and consistent ROCE throughout the last few years
- Decent and consistent growth throughout the last few years
- Good valuations (Lower PE than the market)
This is coffee can investing. I really care about valuations (during entry) even if a lot of others care not to. I want to get double growth drivers to my holdings (earnings expansion, valuation multiple expansion).
Apart from quantitative criteria above, I do qualitative analysis to see if I understand:
-Basics about the business, whether it has potential to compound
-Management are trust worthy
Exit Strategy
None. I want to really avoid selling at any cost and I am OK even if some companies go to zero. I also am OK holding overvalued companies.
Portfolio considerations
- I keep adding money to the account monthly/bi-monthly and divide it equally among all companies that satisfy the criteria during that time.
- If some position in the portfolio doesn’t satisfy the criteria, I will leave it as is and will not add any more money.
- For new buys, I add as much as to meet the existing positions invested value.
- If the money I add in a given month is not enough for all new positions to meet the existing positions invested value, I then sort it by valuations to pick companies to add.
**Portfolio
| Symbol | % of my portfolio (Buy Value) | % of my portfolio (Present value) |
|---|---|---|
| MARKSANS PHARMA | 4.39% | 5.94% |
| AGARWAL INDUSTRIAL CORPORATION | 4.35% | 4.91% |
| VIKRAM THERMO | 3.55% | 4.52% |
| INDO BORAX | 4.36% | 4.29% |
| SWARAJ ENGINES | 4.34% | 4.16% |
| HCL TECH | 4.37% | 4.13% |
| INFOSYS | 4.44% | 4.02% |
| MAHANAGAR GAS | 4.35% | 3.92% |
| WPIL | 4.31% | 3.89% |
| GNA AXLES | 4.38% | 3.89% |
| DP WIRES | 3.56% | 3.80% |
| SATIA INDUSTRIES | 4.39% | 3.76% |
| AMARA RAJA | 3.52% | 3.57% |
| TRANSPEK | 4.34% | 3.57% |
| CGVAK | 3.56% | 3.22% |
| WIPRO | 3.54% | 3.06% |
| CAPLIN POINT | 2.41% | 3.02% |
| GRAVITA | 1.97% | 2.95% |
| PSP PROJECTS | 2.93% | 2.54% |
| 20MICRONS | 1.42% | 2.19% |
| MAAN ALUMINIUM | 1.41% | 1.91% |
| TECH MAHINDRA | 1.97% | 1.84% |
| FIEM INDUSTRIES | 1.91% | 1.77% |
| DYNA CON | 1.40% | 1.57% |
| FAZE3 | 1.42% | 1.57% |
| MOLD TECH | 1.79% | 1.55% |
| SRHHY POLTD | 2.09% | 1.52% |
| MPHASIS | 1.41% | 1.46% |
| PAKKA | 1.59% | 1.45% |
| VIMTA LABS | 1.43% | 1.23% |
| SHARDA CROP CHEM | 1.44% | 1.06% |
| BOMBAY BURMAH | 0.59% | 0.73% |
| ERIS | 0.52% | 0.67% |
| GRANULES | 0.52% | 0.63% |
| SURAJ PRODUCTS | 0.24% | 0.52% |
| B&A Packaging | 0.52% | 0.52% |
| HINDUSTAN ZINC | 0.53% | 0.48% |
| CIGNITI TECH | 0.39% | 0.47% |
| AVANTI FEEDS | 0.51% | 0.46% |
| MENON BEARINGS | 0.51% | 0.45% |
| IG PETROCHEM | 0.53% | 0.45% |
| SHRIRAM PISTONS | 0.52% | 0.44% |
| BALAJI AMINES | 0.54% | 0.43% |
| INDRAPRASTHA GAS | 0.53% | 0.38% |
| COROMANDEL | 0.38% | 0.38% |
| TALBROS ENGINEERING | 0.42% | 0.30% |
| MK EXIM | 0.24% | 0.26% |
| JK PAPER | 0.15% | 0.16% |
Performance so far
16.36% up so far from May end (including new buys every month). Not sure how to evaluate performance with comparison to NIFTY or SENSEX index since I am adding new money every month.
I expect my portfolio to go up lesser than the index in a bull market but also go down lesser than the index in a bear market. This is because I really care about valuations when I am buying which I usually buy into low beta positions.
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