Author: Naveen

  • Five years as shareholder of Marico

    Five years as shareholder of Marico

    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. 🤞

    Returns

    Profit

    XIRR

    Related reading:

  • Seven years as shareholder of HDFC Bank

    Seven years as shareholder of HDFC Bank

    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!

    Returns

    Profit

    XIRR


    Related reading

  • Five years as shareholder of Divi’s Laboratories

    Five years as shareholder of Divi’s Laboratories

    My investment in Divi’s Laboratories has been my biggest missed opportunity. Five years back—still new to equity investing—I was looking for Pharma stocks to invest. During that research—not sure if I should call it research, but let’s go with it—I came across Divi’s Laboratories. I made a small investment in it and forgot about it. In the next 3.5 years the stock went up 5 times! And I did not make a single new investment during that time! Every time I thought “it can’t go up any further than that”. Boy was I wrong. So, so wrong!

    Below are my key takeaways.

    • My biggest takeaway has been that if a share price doubles in short span, then I need to start reading about the company before arriving at decision that “Isse upar nahi jaayega”.
    • While I did complete 5 years as shareholder of Divi’s Laboratories, there was a gap of 3.5 years between my first and second investment. And during that time the stock went up 5 times. As my first investment was minuscule it didn’t help me in the recent market crash.
    • I have invested 7 times across these 5 years, with last 6 investments coming in last 2 years.
    • Surprisingly, COVID-19 market crash had little effect on my XIRR.
    • But the Russian invasion of Ukraine and its subsequent effects, on the other hand, decimated my XIRR. It currently stands at 6%. Ouch!
    • The company has been paying dividends regularly. No complaints over there.

    Returns

    Profit Percent

    As you can see, during its remarkable rise I just sat there thinking, isse upar nahi jaayega.

    XIRR

  • Four years of SIP with DSP Tax Saver Fund

    Four years of SIP with DSP Tax Saver Fund

    Last year I blogged about 3 years with DSP Tax Saver Fund and L&T Tax Advantage Fund. I continued with DSP Tax Saver and discontinued L&T Tax Advantage Fund. Below are my key takeaways.

    • I started investing in this fund entirely based on my (limited) research.
    • My first couple of instalments were in regular plan before realising that there is something called as direct plan which has lower expense ratio (thank you Economic Times). I switched to direct plan after first three instalments. The below analysis is combination of both regular and direct plans.
    • From 2021 I started another SIP in the fund so you will see more steps in my ‘Return’ chart.
    • I used the COVID market crash to buy more units as lump sum investments.
    • My investment in DSP Tax Saver is beating Nifty 50 Index. Yay! At least of now. And I am planning to continue with this fund in near future.

    Returns

    Profit

    XIRR


    Related reading

  • Three years of SIP with Aditya Birla Sun Life MNC Fund

    Three years of SIP with Aditya Birla Sun Life MNC Fund

    Three years ago I started investing in Aditya Birla Sun Life MNC Fund with advice from my MF advisor. The fund invests mainly in the shares of multinational companies which was very different from the large cap funds. So I decided to invest more in it via direct plan while also continuing my regular plan. So my returns here are combination of regular and direct plan of Aditya Birla Sun Life MNC Fund. Below are my key takeaways.

    • I have a monthly SIP in both regular and direct plan.
    • For me, the fund has been underperforming Nifty 50 Index since Oct-2020.
    • I am planning to continue with this fund in the near future.

    Return

    Profit

    XIRR

  • Risk

    People are very good at forecasting the future, except for the surprises, which tend to be all that matter.

    The biggest risk is always what no one sees coming. If you don’t see something coming you’re not prepared for it. And when you’re not prepared for it its damage is amplified when it hits you.

    Look at the big news stories that move the needle – Covid, 9/11, Pearl Harbor, the Great Depression. Their common trait isn’t necessarily that they were big; it’s that they were surprises, on virtually no one’s radar until they arrived.

    It’s like that every year. It’ll be like that every year.

    Never Saw It Coming
  • Three years of SIP with Axis Bluechip Fund

    Three years of SIP with Axis Bluechip Fund

    Three years ago I started investing in Axis Bluechip Fund with advice from my MF advisor. As it was via a distributor it is a regular plan. Below are my key takeaways.

    • I have a monthly SIP and I haven’t missed any instalment.
    • Till Sep-2021, my returns with Axis Bluechip Fund was comparable to that of Nifty 50 Index Fund. But post that, there has been a sustained underperformance which has only increased during the recent market crash.
    • I am planning to continue with this fund in the near future.

    Returns

    Profit

    XIRR

  • Three years as shareholder of L&T Infotech

    Three years as shareholder of L&T Infotech

    When L&T Infotech came out with its IPO I wasn’t very excited, so I let it pass. And two years later when the share price doubled I ended up slapping my forehead. I swallowed my pride, acknowledged my horrendous stock picking skills and decided to invest in it. Below are my key takeaways.

    • I have invested 5 times across these three years, with last three investments coming in last six months.
    • The gap between my first and second investment was 2.5 years. Looking back, it was a lost opportunity for me that I didn’t invest more during its rise. The second time I invested in L&T Infotech, its share price had tripled. Wow!
    • The share price had been in upwards trajectory till Jan-2022. Since then the share price has been falling, impacting my XIRR. Below were the three key events since Jan-2022 that weighed down on my XIRR.
      1. Russian invasion of Ukraine
      2. Announcement of L&T Infotech merger with Mindtree
      3. Surprise rate hike of 40 basis points by RBI
    • The announcement of L&T Infotech merger with Mindtree was particularly devastating to my XIRR. That news pulled it from 45% to 17%. And it did not help that I had bought additional shares just before the announcement with price hovering around 6000. 😭
    • Here’s a little fact. Nov-2021 my XIRR is 85%. Woohoo! As of today my XIRR is 5%. Ouch!
    • Till very, very recently I was beating Nifty 50 Index by a huge margin. Not any more!
    • The company has been paying dividends regularly. No complaints over there.

    Returns

    Profit

    XIRR

  • Broken window theory

    Interesting metaphor for technical debt by Andy Hunt.

    Researchers studying urban decay wanted to find out why some neighborhoods escape the ravages of the inner city, and others right next door—with the same demographics and economic makeup—would become a hell hole where the cops were scared to go in. They wanted to figure out what made the difference.

    The researchers did a test. They took a nice car, like a Jaguar, and parked it in the South Bronx in New York. They retreated back to a duck blind, and watched to see what would happen. They left the car parked there for something like four days, and nothing happened. It wasn’t touched. So they went up and broke a little window on the side, and went back to the blind. In something like four hours, the car was turned upside down, torched, and stripped—the whole works.

    They did more studies and developed a “Broken Window Theory.” A window gets broken at an apartment building, but no one fixes it. It’s left broken. Then something else gets broken. Maybe it’s an accident, maybe not, but it isn’t fixed either. Graffiti starts to appear. More and more damage accumulates. Very quickly you get an exponential ramp. The whole building decays. Tenants move out. Crime moves in. And you’ve lost the game. It’s all over.

    We use the broken window theory as a metaphor for managing technical debt on a project.

    Don’t Live with Broken Windows
  • Three years of SIP with Mirae Asset Emerging Bluechip Fund

    Three years of SIP with Mirae Asset Emerging Bluechip Fund

    Three years ago I started investing in Mirae Asset Emerging Bluechip Fund with advice from my MF advisor. As it was via a distributor it is a regular plan. Below are my key takeaways.

    • I have a monthly SIP and I haven’t missed any instalment. In fact I wanted to increase my SIP amount but Mirae Asset has restricted further inflows in the fund.
    • My investment in Mirae Asset Emerging Bluechip Fund has outperformed Nifty 50 Index fund—that too with regular plan where I have higher expense ratio.
    • The best XIRR that I saw was in Sep-2021 where it went till 45%. Since then due to market correction it is now at 25%.
    • I am planning to continue with this fund in the near future.

    Return

    Profit

    XIRR