Booked profit in Mercury EV at 3x as needed money for preferential of Kore digital. Exited Hazoor at 3x as mangaement is not trustworthy
exited coffee day at 2x too as better opportunities available. Exited Patel engineering, Silcon rental as many companies with 50% plus CAGR available and dont want to get stuck in 20% plus CAGR.
will Hold Kamat as I feel at 100 crore PAT with 40 PE, it will reach 1000 min this year. Sonalis conusmer is only risky bet now and will wait for H2 result and if not good then will book loss. New entries are Addictive learning and Docmode
Key learnings :-
Large allocation in the early phase when high conviction in management, value, patience to let the winners run, foresight to see megatrends and future ahead in years and decades not in a quarter or year and ignore all the noise be it macro factors or fluctuations. India itself is a megatrend now as we aim to cross 30 trillion dollars and beyond in the coming decades.
As late Big bull Rakesh used to share that he does three things in equities something may be only he could pull off hence the greatest of all time (futures and options, trading upto one year then investing) – don’t want to try future and options as Vijay Kedia says – Rome was not built in a day but Hiroshima was destroyed in a day. The framework for investment – explosive growth for years ahead with reasonable valuation (50% plus CAGR with large opportunity and runaway ahead with tailwinds).
Insight from rewowned investors like Peter lynch, Rakesh Jhunjhunwala, Warren Buffet, Charlie Munger, Vijay Kedia, Bharat Shah, Madhusudan Kela, Utpal Seth, Howard Marks, Gunavanth Vaid, Mohnish Pabrai, Ridham Desai, Ramesh Damani, Ashwath Damodaran, Porinjy Veliath, Raamdeo Agrawal, Basant Maheshwari, Nilesh Shah, Ruchir Sharma, Ashish Kacholia and many other stalwarts. Almost all of them are so generous in sharing their framework, thinking process and overall experience, triumphs and failures- youtube videos of their perspective is an excellent source. More importantly anyone can see their allocation as in most the holding is above 1% so their entry and exits are in public domain. This is one of the easiest way to learn from the masters.
Anyone with class four level arithmatic and common sense can become investor as Peter Lynch shared how class seven students consistently beat returns of professional of wallstreet. Will continue to stay away from cyclicals as am not smart enough to navigate it, overvalued, hyped , stressed assets. Investing is very forgiving as all we need is a few winners. It is similar to life as all we need is to be really good at a few things, a few good relations, a wide range of interests and friendly disposition.
When one of the greatest of all time Warren Buffet says that his capital allocation decisions have been really good in single digit percentage across lifespan then one can imagine what lesser mortals can do. One also needs to look at Berkshire’s investment in Paytm (where was MOAT, cashflow, pricing power or even value) which it exited with loss after five years. How difficult it is for the most renowned institutions to practice each time what they preach! To avoid stressed assets and also very rarely on turnarounds as going up from bottom is rare. To paraphrase even the best of leaders rarely develop their weak areas because self development itself is one of the toughest things. Turning around an organisation is extremely difficult so why bet on trouble.
Sharing most of the portfolio for the long term for the framework, the terminal value in the decade ahead can be much higher and not all will go as per the projection but all one needs are a few winners as Peter Lynch said and they will take care of the rest. The idea here is to share that have a long term horizon and if one is shuffling portfolio also by looking share price regularly but not on the basis of inherent strength of business and potential (future earnings) then returns are likely to be mediocre. Investing is like life in many ways- one gets what one is searching for. It is same ocean, what is that one is looking for salt, fish or pearls so all we need are a few pearls in form of relations and stocks for life. This is a simplified framework and projection for illustration. DO YOUR OWN DUE DILIGENCE
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