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.
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.