Last year when I wrote about ITC, I mentioned that there are die hard fans of ITC who are waiting for its resurrection some day. I think that day is here. Since Feb-2022, ITC has consistently moved up and as of today it is beating Nifty 50 Index after five years.
ITC continues to give great dividend returns with the latest dividend yield at cost for me at 2.8%.
Investment through the years
Like Asian Paints, I did not continue investing in ITC after my first investment. That was a bad decision. 83% of my total investment in ITC has been made in last three years so I am still a long way to consider myself as a long term investor.
I have been incredibly lucky with my investment in Havells. With 25% XIRR I have beaten the Nifty 50 Index by a comfortable margin. But then it is because of this outperformance I have been a bit hesitant to invest more in this stock. I have not invested in this stock since last two years and the share price’s sideways movement has meant that the outperformance over Nifty 50 Index has shrunk over the last year.
The company pays dividends regularly and for me the latest dividend yield at cost has been at 0.7%.
The Russian invasion of Ukraine did affect the share price but it was still resilient compared to some other companies.
Six years into my investment in Asian Paints with 26% XIRR, I should say I am really happy. But considering that 85% of my investment came in last 3 years, I should probably change the title of this post to “3 years as shareholder of Asian Paints”. And the 26% XIRR starts looking a bit unrealistic—at least in the long term.
The company has been a solid performer and regularly pays dividends. For me, my latest dividend yield at cost was 0.8%. My investment has been able to beat the Nifty 50 Index comfortably since last 3 years. Yay!
Like my investment in Pidilite, I am yet to see a negative XIRR since last five years on my investment. Even during the COVID-19 market crash my XIRR went from 17% to 8%. I would say that is pretty resilient compared to VIP Industries.
The news of Grasim entering in paints business and their subsequent announcement of doubling their investment in it, did put a short term dent in my returns. Although it quickly recovered, but I will have to see how it affects in the long term.
Investment through the years
A big missed opportunity was not investing in Asian Paints during 2017 and 2018. Had I invested a significant amount during that time, my XIRR returns and the actual corpus amount would have been substantial. This is something for which I will always kick myself.
Three years ago I was searching for a mid cap mutual fund and I came across Franklin India Prima Fund1. I decided to go ahead with it as it was one of the oldest funds starting way back in 1993. Initially I used to invest only lumpsum amount as when I had surplus. But starting Aug-2021 I decided to start an SIP in the fund. During the market crash of COVID-19, I continuously invested in the fund accumulating units at a lower price.
Franklin India Prima Fund has been outperforming the Nifty 50 Index ever so slightly. But a better comparison will be another actively managed madcap fund. So, I am comparing it against PGIM India Midcap Opportunities Fund2. And against that, Franklin India Prima Fund has underperformed by a huge margin. Had I invested in PGIM India Midcap Opportunities Fund I would have made an XIRR of 45% compared to 25% of Franklin India Prima Fund. Ouch!
But despite the underperformance, I am planning to continue my SIP in near future with hope that it is able to match the performance of its peer mutual funds.
Returns
Profit Percent
XIRR
Footnotes
I am investing in direct plan.
I am comparing the direct plans of Franklin India Prima Fund and PGIM India Midcap Opportunities Fund
The problem isn’t that the youngest generation hates work; the problem is that many of the jobs offered to the youngest generation aren’t work at all.The spreadsheet-heavy, mid-level-manager-dominated, buzzword-filled roles offered to us are jobs, but they are hardly “work.”
For any gamers out there, one of the oldest tricks in the book is giving your younger sibling an unplugged/disconnected controller, so they feel like they are “playing”, while you are in control the whole time.
Many “jobs” today are simply unplugged controllers. The work would get done, whether or not we take part in the process. We are simply moving numbers, smashing buttons, and staying busy, with no regard for actual productivity.
In recent years, Earth has been speeding up. In 2020, timeanddate reported that Earth had achieved its 28 shortest days since accurate daily measurements using atomic clocks began in the 1960s.
The shortest day of all in 2020 was -1.47 milliseconds on July 19.
Earth continued to spin quickly in 2021, although the shortest day of the year in 2021 was fractionally longer than in 2020.
Now, in 2022, things have speeded up again. On June 29, Earth set a new record for the shortest day of the atomic-clock era: -1.59 milliseconds.
Earth nearly beat its record again the following month, posting a length of day of -1.50 milliseconds on July 26.
Five years back when I invested in VIP Industries I wasn’t really serious about it. I made small investment in it and forgot about it. But then like Divi’s Laboratories the share price exploded. And then it imploded when COVID-19 hit, because who is going to buy travel bags when you are in lockdown. Five years later with 30% XIRR, I now think I should have invested more. Below are my key takeaways.
I have invested four times across these four years. But in the past one year I did not make any new investment in it.
At 30% XIRR, my investment in VIP Industries has outperformed Nifty 50 Index which would have been at 18%. Heck, it even outperformed HDFC Bank and Pidilite Industries. But considering the small principal it doesn’t really move the needle for me.
VIP Industries is one the most volatile stocks in my portfolio. During COVID-19 market crash my returns went from positive 170% to negative 20%. Although, it has stabilised a bit in the past one year.
The company pays dividends regularly except during COVID-19, which is totally understandable.
Surprisingly, the Russian invasion of Ukraine had very little effect on the stock price of VIP Industries.
Five years into my investment in Pidilite Industries I can say that it has been my most consistent performers. Get this, even at its worst point my XIRR was 6% which is like fixed deposit returns. If I had sold my investment in Pidilite Industries at any point in time I would have still made more than fixed deposits (I am discounting STCG and LTCG for the wow factor as of now). Below are my key takeaways.
I have invested 19 times across these five years in Pidilite Industries.
As I said above, my returns have always beaten fixed deposit returns.
At the start of 2022 I was looking at nearly 40% XIRR. But the Russian invasion of Ukraine put in a dent on that.
Considering Nifty 50 index for comparison, my investment in Pidilite Industries has beaten it most of the time. As of today my XIRR stands at 23% compared to 18% for Nifty 50 Index. Woohoo!
The company pays dividends every year but my dividend yield at cost has been at a meagre 0.6%. But looking at the XIRR I should not be complaining.
With the general consensus of 10 years being long term, I am now half way through as a long term shareholder of Marico. Below are my key takeaways.
I have invested 12 times in Marico across these five years.
My returns have been a bit volatile and considering this is Marico it was a bit surprising for me. I have also underperformed Nifty 50 Index majority of the time.
The company has been paying dividends regularly twice a year. No complaints over there.
As of today my XIRR with Marico is same as Nifty 50 Index i.e. 10%. Hoping to see it at 15% after five more years. 🤞
Seven years ago I started my equity investment journey with HDFC Bank. I have continued to invest in the company through these years. Below are my key takeaways.
I have invested 21 times in HDFC Bank across these seven years.
My returns were been between 15-20% consistently, except during COVID-19 market crash. And I was beating the Nifty 50 Index till Oct-2021. But, since then I am underperforming the Nifty 50 Index by 3-4%. Considering HDFC Bank makes up a good chunk of my portfolio I am now worried a little bit. 😰
The company has ben paying dividends regularly. And the recent dividend of ₹15.50 per equity share—which was highest in 11 years—did give me some joy. 😁
My current XIRR is at 10% compared for Nifty 50 Index of 13%. Ouch!
