Beating index is hard. Really, really hard. Even for a company like Marico with solid fundamentals.
In my six years of investment with Marico, there have few sporadic periods where my investment has beaten Nifty 50 Index; majority of the times it has underperformed. For my consolation, I even tried calculating XIRR including the dividends, still no.
I have a very similar feelings as the author here.
I cannot get around that no matter what I do, beating the market consistently is very hard, and even if I manage it, it is more due to luck than skill. I am no longer excited whenever I see a new tweet, article, or video about a new product.
The idea of passive or index investing has killed my passion for investing.
How index investing killed my “passion” for investing
Will I continue investing in Marico? I… don’t know. Considering such a continued under performance, it does shake your confidence.
How is my dividend yield at cost? At 0.85% for FY 2023-24, I would say, meh! Some wouldn’t even say that.
Investment through the years
Returns
The dividend yield at cost mentioned in the chart above, is yield at the date at which I received the dividends. Another way to look at dividend yield is to calculate it for the fiscal year.
| Fiscal year | Dividend yield at cost |
| 2017-18 | 0.79% |
| 2018-19 | 1.50% |
| 2019-20 | 1.66% |
| 2020-21 | 2.17% |
| 2021-22 | 1.91% |
| 2022-23 | 0.85% |
| 2023-24 | 0% * |
To calculate the dividend yield at cost in the above table I use the below formula.
(Total amount of dividends received in a fiscal year ÷ Total amount invested at the end of fiscal year) × 100
Profit
XIRR
Related reading:
Note: I missed including some of my Marico share purchases in previous articles. These are rectified in this post, so there will be difference between my previous analysis and this one.
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