Returns have not been very concentrated, its not like 3 stocks account for 50% of returns. ITC has been the biggest contributor so far, accounting for 6% returns, and you can see how the distribution looks like below.
Another way to look at it is what % of my folio returns is accounted by #1-5 stocks, #6-10, and so on.
| Stock ranks | % returns |
|---|---|
| # 1-5 | 24.20% |
| # 6-10 | 16.95% |
| # 11-20 | 25.24% |
Some more statistics to chew upon:
Total stocks invested in: 89
Stocks in losses: 16
Cumulative losses from these 16 stocks has been 6.65%, ITC alone has contributed to 6% returns. So almost all losses have been struck off by ITC.
The hit ratio of 82% is abnormally high because we are in the middle of a bull market. I hope I can maintain this ratio over 65% over a period of time.
I hope the above statistic answers your question.
I only started tracking performance of deep value from August 2021. Before that, I used to make token investments as I wanted to get comfortable with the idea. Since 2021, this part of portfolio has generated IRRs of 75%. Its highly highly unlikely that future returns will look like this as I scale up this segment, but I do plan to scale it up.
I have 100s of concerns about Ashok Leyland, but scaling up is not one. Its 2nd largest CV manufacturer in India with a very wide distribution network. EV scaleup is just a matter of time.
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