Portfolio details

Wonderful portfolio, RohitThanks for publishing.Ani

Hi Rohit, Surprised not to see Bluestar in your core portifolio. RegardsPrashant

Hi Rohit,A solid, unexciting (take this as a compliment) and no-nightmares type of portfolio. I know you will be showered with mails after this disclosure. But I hope you could find a few seconds to let me know your opinion (as always, well respected by me) on the following ones:HBL Power systemBank Of IndiaMicro InksEssel PropackManaksia LtdGE ShippingThanks in advance. Regards,Prashanth

Hi prasanthI had checked GE shipping quite some time back and thought it was undervalued then. It seems to be a best among the shipping companies.I had seen micro inks too and i am quoting from memory. I was not sure how their expansion into foriegn markets would play out. subsequently the company did not do well in the foriegn markets and the stock got punished. have not checked the company since theni have checked the other companies and will provide my view once i am able to do thatregardsrohit

Hi Rohit, I discovered that Gujrat Gas management has awarded themself 740,000 shares recently. Although amount is trivial compared to their profit figures (1.4 core vs 272 core). Are they shareholder friendly? Mahesh

I came across some -ve news on Merk , thought of sharing with you . Pl discard if you already know and factored this news ——————————Merck India share price is losing ground. Mainly on account of:1. It has 100% subsidiary Merck Specialities where all new products in Cardio Vascular, Gastro Intenstinal, Anti-Hypertensive, Diabetology & other life style ailment products are introduced. Several new research molecules are routed through this 100% subsidiary which doesn't come under listed entity.2. The product range of the Listed Merck is outdated to such an extent that, every Indian pharma company is making such Vitamins & Nutrition products in India. Its basically quiet messy market for vitamins.Its better Merck, Germany comes out with delisting open offer for its listed entity rather making listed Merck India to die on slow poison.——————————sourcehttp://www.moneycontrol.com/india/messageboardblog/11/29/message_thread/2189805/2921500Nag

Hi Rohit,I have a basic question.How do we determine the % of portfolio. Should it be based on the cost price or should it be based on the market price (in which case it will fluctuate day to day). For ex, lets say 10% of your pf is LMW, tommorow if the price drops , it will be only 8 %. Will you add more of LMW . Please note that I took LMW just as an example.

Rohit,Have you ever tried converting 50 cent Dollar into 20 or 30 cent dollar ? I have not done it before. But my hands are itching as I am seeing bargains everywhere..At the moment all securities are down , Hence I need to convert Notional Loss into Actuall loss then do the conversion..Is it sensible to do it ?RegardsVishnu

Hi ani and otherswish all of you a very happy diwali tooregardsrohit

Hi vishnuif you are short of funds and confident of the new idea, then you should go for the better idea.moving out of a 50% discount idea to 70-80% idea will payoff eventually. personally i dont look at notional losses ..notional losses are recovered ..so if you have better idea then makes sense to move to it. however the key is to know the difference between a notional and real lossregardsrohit

vikasi am equally bulllish on all which is why i am equal wieghted on all stocks in the core portfolioregardrohit

Hi Ravi,I am fully agree with you. When i started reading Rohit’s blog, i had same questions, Vikas is having in his mind right now. First thing i did was choosing the parameters for stock screening. Mine are same like rohit’s. (So here i am in line with Rohit 🙂 ) then understanding the cash flows and learning DCF method to do rough valuation. Couple of times i asked rohit about his valuation of particular stock to check my valuation is correct or in sync with his.I am following Vikas on TED also, the only problem with him is he is jumping on any idea coming from Vivek Sukhani or ROhit, once he is able to evaluate that idea on his own then most of his work is done. And i am sure here (on Rohit’s blog) he will learn that.rgdsAni

Hi Rohit,Thanks for your patience again. Ravi’s comments remind of a request that I had made earlier. I understand you’re a busy person and already contribute a lot for others. But pls do list some of the basic steps (based on your experience) for Value Investing..whenever you can. I know you have had an investment journey of 8-10 years which is similar to mine till you became a Value Investor (I assume mainly over last few yrs)..for the most part .Thanks,Vikas

HiYour last comment is pretty interesting, You did badly when the markets were bad, starting out early, then you did well when the markets were strong, now where is the skill, if your boat rises and falls along with the sensex, that is not a great thing, is it?And about the alpha bit, where is it, is it skill, or is it just luck, now indexing would have done better during this period for almost any conservative investor, but the picks you have put up and the analysis that you have shared, hasn’t really convinced me that it is enough skill so as to make a big differenceYour analysis needs to be a lot more rigorous, now it is fun when one guy writes something and 10 guys sing his praises, and then everybody gets all puffed up and invest in the same thing all together, and then realize that the position does not do well, and then all of them blame Mr Market, maybe it is human nature, but the when I see the above process repeated again and again and again it seems pretty evident to me that somebody is wrong – either Mr Market or this group of guys, and looking at the analysis I have reached the conclusion that Mr Market is rightRana

hi ranai have never claimed that one should follow my picks or that each of my picks will beat the market.i have also never claimed i have superior or alpha skills.acutally i have never shared my returns on the blog till date.the entire purpose of the blog is to share my learnings and analysis and open it for other’s criticism and analysis. It is upto you and others to accept it or reject it and do what is right for you or makes sense for you. i tracked my own performance for the last 8-9 years and i have beaten the market over all by a decent margin. ofcourse my performance has dropped when the market drops, but it dropped less than the market during bear markets and risen more than the market during bull runs. this performance is satifactory for me ..is it good enough for others ..maybe not ..but it does not matter to me as i am not investing for others ..i am investing for myself based on my risk return requirements. At the same time I have done indexing also to provide a benchmark against which to measure my performance and also because it provides acceptable returns with minimal effort. I have said so on the blog.regarding my picks not working out. it is not hypothetical issue ..they have not worked out several times and i have listed them on the blog. i am pretty certain some will not work out in the future and i have been wrong. however till date the hit v/s failure ratio has been good and i have had decent returns. I noted on this post – if you go by the date when I published the analysis and try to compute the returns, you will get an incorrect picture. What is missing is the average price and the portfolio wieghtage. I will however not be disclosing that. You have to look at the analysis objectively (not because I am able to beat the market or not) and see if you agree with it or can provide counter points to it.8-10 years is not enough to know whether the returns are due to luck or skill. i am myself aware of it and hopefully it is skill and learnings ..only time will tellfinally, i am concerned whether others gree with me or not. it does not help my picks. the more dis-agreement the better. i prefer to be corrected than being popular. in the end one’s analysis is what makes you correct and not what 10 other people think about it.can you be more specific on the rigour and analysis part ? you mention it without providing specifics.i would appreciate inputs on thatregardsrohit

Hi kannanmy own valuation for LMW assumes a 55% drop in net profit and 10 year profit growth of 5% per annum. even with these conservative assumptions the valuation is around 3000+. so in a way LMW is doing slightly better than my assumptionsregardsrohit

hi ganapatii am not aware of the above. i hope this is limited to govt psu and not private companies. forced charity would be bad for business

Hi Rohit,Where do you keep your spare cash, which you have not invested in stocks – bonds, FD, other?Apprecite your reply.ThanksPrashant

Looks a “solid” portfolio! thanks for putting this out. I had a question on Balmer Lawrie, though. Not considering the price at which you boought it – what really is the company's core strength? its into ticketing/travel, leather chemicals, manufacure of MS drums – khichdi really! Its a dumbed down version of L&T and I suspect you'll get rid of this one, too, though of course at a profit!