Thanks for your comment. Actually I was a share holder of Lakme Ltd and the Brands were sold to HUL and a lump sum was distributed to the share holders. The management created Trent with remaining money from the sale proceeds. All shareholders of Lakmé were given equivalent shares in Trent I invested lumpsum received in Trent, then there were rights issue in 2005 and 2006 and I built my position then, after that there was no addition. I recovered my investment by selling some quantity during Covid. I always had faith in Mrs. Simone Naval Tata, a Swiss-born businesswoman married to the Tata family. I was fortunate to meet her in person twice. She was the main architect of successful brand Lakme. She had great vision of launching a female centric fashion retail business in India in early 2000 when nobody even thought of that. I actually thought of selling my position during 2008,but those days it was difficult to sell as the shares were not in DMAT, the procedure was cumbersome for person residing in a tier 2 town. The time was full of gloom and I stayed away from stock market for next 3 years. Fortunately for me I did not sell any of my share holdings by sheer luck. The stock was already a multibaggar & became 6x during 2003 to 2006. I am old school type and I don’t sell any of my stock as long as the business model is intact, and I am not in need of money. Only exception was during Covid, as I built a big corpus in my savings account for emergency hospitalization to take care of 4 persons responsibility. I have seen 2-3 bear markets and experienced that if a business model is good eventually, you beat NIFTY in the long run. The problem I face is of position sizing during a bull run so as to have a downward protection of gains before the cycle turns. This problem I am facing again. Like most of us, I am unable to predict, when the cycle will turn and analyst are bullish on earning growth of Trent. I keep things simple ( I have limited knowledge) and track ROCE performance in the long run and if it goes down I reasses the business model. Please share your suggestions on position sizing.
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