In all his talks, Saurabh Mukherjea is consistent in his advice that we should only focus on well-run high-quality companies with clean accounts and sensible capital allocation. You will find this in his latest “Coffee Can Portfolio” and also in his “Ten-Baggers Stocks Portfolio”. Even the “Good & Clean Portfolio” for 2014 is on the same lines. His bestseller book “Gurus of Chaos” preaches the same gospel of sticking to top quality companies.
His selection of stocks such as Century Ply, TVS Motors, Motilal Oswal etc are also in the same mould. It is not a coincidence that each of these stocks is a huge winner.
In his latest chat with ETNow, Saurabh Mukherjea has given a detailed explanation of why he is moving away from cyclical stocks and instead increasing weight on Pharma, FMCG & IT stocks in the Model Portfolio.
Saurabh emphasizes that if we focus on the “good and clean” sort of companies in India, we can comfortably outperform the market over most time horizons. He adds that over the last four years, the Model Portfolio has beaten the BSE 500 by a good 25%, just by picking well-run and sensibly-managed companies quarter after quarter.
Saurabh also pointed out that there has been a shuffle in the Model Portfolio. Three frontline banks have been added to the Portfolio. These are IndusInd, City Union Bank and DCB Bank. The other stocks in the portfolio are Axis Bank, Shriram City Union, Mahindra CIE, Repco Home Finance, Tata Motors, TVS Motors, MRF, Sundaram Fasteners, Page Industries, Bata India, ITC, Finolex Cables, Idea cellular & Coal India. The Pharma space is represented by Lupin, IPCA & Torrent Pharma.
Some stocks which have been removed on valuations concerns are Britannia, GSK Consumer, Berger Paints, Eclerx, VST, Wabco TVS, and Eicher Motors.
Eclerx was part of Saurabh’s cofee can portfolio (price then was ~1300). Now the stock has been removed due to valuation when price is ~1200!!
A cofee can portfolio is for very long period like 10 years. He changed it within weeks!! Very consistent?!
How has valuation risen with fall in price? Earnings have not declined.
I agree…coffee clean portfolio changed within weeks and who is tracking it ..the portfolio has to be tracked after you design it not before…this guy thinks that just because he wears suit and speaks accented English he can come up with anything…as if we all are fools …one good analyst is G. Chokkalingam….a quintessential Tamilian who picks the stock and gives the rational behind the stock’s intrinsic value…very simple man…no political explanations…picks stocks on merit and value …his views should be featured
hahaha…good catch Deepak 🙂
motilal oswal clean ???? NSEL fiasco???
of these 3, century ply does have merit to be included in any PF
Please understand that the coffee can portfolio and The Good and Clean portfolio 9.0 are different ones. The fact that there is a change in the g&c doesn’t mean that Saurabh and ambit has trashed the coffee can portfolio. It is and will remain unchanged in all probability. The amount of work that has gone in to the creation of the coffee can portfolio is tremendous.
The g& c 9.0 is meant for foreign clients and he has explained the reason for the churn when comparing it to g& c 8.2. The commenter above has mixed up both the portfolios.
The coffee can portfolio is meant for small Indian retail investor who has a long term view in excess of 15, where in they would compound steadily across market cycles. You can really be passive if you have that kind of portfolio, and maybe re- invest dividend income diligently.
Do any of you find it hard to understand what Saurabh says, because of his accent? In my perception it is quite neutral and his vocabulary seems to be good.
I don’t mean to offend anybody with my comment, just stating a different view.
only accent he has is the ‘bongoli’ accent
probably one gentleman is referring to me…no I am not offended …and I have not mixed any portfolio…all I wanted to say that you should track a portfolio after its created…you can not put stocks and then say look the have beaten the sensex in the last 5 years…does it require great intelligence or research or work to do this…any regular investor can do this …today I can also make a portfolio like this…and in terms of future 15 years is a very very long time …. if he comes a portfolio which may outperform in the sensex over 2-3 years then maybe investors would look it…really no investor ..not in India or anywhere would have that patience …people invest in stock markets to make money…and for liquidity….honestly I did find his accent as somebody who is trying to impress his foreign degree ..maybe he studied at Harvard Business School…others may not…that is not something against him…but do not agree with his ideas
its funny ..this analyst was again on the TV and speaking in his typical accent..wonder how anybody misses it …
Why is something not good for foreign clients but good for retail investors? Shouldn’t retail investors also invest in good and clean? If Eclerx is no longer good n clean, why should a retail investor hold if for 15 years? As far as I know Ambit does not cater to retail investors and hence it is unlikely he is talking about retail investors. Is it fair to ask his clients (FIIs) to sell Eclerx but ask gullible retail investors to hold on to it and forget it for 15 years?
Eclerx is rising today…funny..