naveegator.in

Author: Naveen

  • 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 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

  • Three years as shareholder of Polycab

    Three years ago Polycab came out with its IPO. I applied for it and got lucky.

    The company listed at 21% premium giving me an instant unrealised profit. The share price continued its upwards trajectory after that. The second time I got the courage to invest was after the correction due to COVID-19 market crash. After that also the share price has kept its upward momentum and I have been hesitant to invest more.

    The share price is now 4 times its listing price because of which I am now in a dilemma—what if I invest and the share price falls or what if I don’t invest and the share price still goes up. 🤔

    Below are my key takeaways.

    • In these last three years I have invested twice in the company—one of that was during the IPO.
    • In these three years, I am yet to see negative returns on Polycab. Even during the COVID-19 market crash the XIRR did not go below 10%.
    • The XIRR currently stands at 70%, yes that’s a positive 70%. Which is insane and… not sustainable. Consider this, at 70% CAGR your 10,000 will become 20 lakhs in 10 years. Nah, thats not going to happen.
    • My investment in Polycab—which is really small—has beaten Nifty 50 Index fund by a huge margin. With Polycab I have XIRR of 70%, while with Nifty 50 Index I would have 20%.
    • The company has paid out dividends thrice during three years, so no complaint there. And the dividend yield at cost for me is 1.4%, which is good.

    Returns

    Profit

    XIRR

  • Five years as shareholder of Motherson Sumi [and Wiring]

    With the general consensus of 10 years being long term, I am now half way through as a long term shareholder of Motherson Sumi. Below are my key takeaways.

    • I have invested 6 times across these five years.
    • It has been a roller coaster ride with this stock because when I first invested in the company, the share price was already at its peak. And then the share price started its downfall.
    • During the COVID-19 market crash my XIRR went from an already negative 15% to negative 45%. Ouch!
    • The company very recently demerged its wiring business in a separate entity as Montherson Sumi Wiring. With the demerger I got 1 share of Motherson Sumi Wiring for every share of Motherson Sumi Systems. I am including that also in my calculations. Hopefully this demerger should unlock value like it did in the case of my investment in Greenply.
    • After four years of negative XIRR, last year I finally saw it go positive. Yay! But the Russian invasion of Ukraine pulled it down. Ouch! And the listing of demerged Motherson Sumi Wiring pulled it up again. Yay!
    • My investment in Motherson Sumi has not been able to beat the index fund. Hoping to beat it in the next five years. 🤞

    Returns

    Profit

    XIRR

    Related reading

  • Four years as shareholder of Kansai Nerolac

    Happy with my investment in Asian Paints, four years ago I decided to invest in another paint company Kansai Nerolac. My returns have been, well, not good. Below are my key takeaways.

    • I have invested 6 times across these four years.
    • The company pays dividends regularly, but my dividend yield at cost has never touched 1%.
    • During the COVID-19 market crash my XIRR went from 0% to negative 15%.
    • The best XIRR came during Jan 2021 when it touched 45%. But that was an anomaly and it quickly fell to a realistic level of 25%.
    • The company has been barely able to beat Nifty 50 Index fund and since last one year Nifty 50 Index has beaten it by a huge margin. As of today while the returns in Nifty 50 Index fund would have been 25%, Kansai Nerolac’s returns has been at –5%.
    • The Russian invasion of Ukraine was more severe than COVID-19 market crash with my XIRR going from 15% to –10%.

    Return

    Profit

    XIRR

    Related reading

  • Four years as shareholder of Supreme Industries

    I have been investing in Supreme Industries for four years. And after four years I can say that I happy with my investment. Here are my key takeaways.

    • I have invested 8 times across these four years.
    • The company has been regularly paying dividends and the best dividend yield at cost was 1.4% that I have received in Jun 2021.
    • During the COVID-19 market crash my XIRR went from positive 15% to negative 15%.
    • The best XIRR came in Oct 2021 at 35%.
    • Over the last two years the company has been able to beat Nifty 50 Index.
    • The Russian invasion of Ukraine dented my returns but I used it to accumulate more shares—something that I did not do during the COVID-19 market crash.

    Return

    Profit

    XIRR

    Related reading:

  • Four years with Motilal Oswal Long Term Equity Fund

    Last year I blogged about three years with Motilal Oswal Long Term Equity Fund. I continue to hold this fund and continue to be in dilemma that should I completely exit it. Now that all my units in this fund have completed 3 years, I can exit this fund. The world has changed in last one year—Covid is (nearly) gone, war has started and much more. I did not make any further investments in this fund.

    Returns

    Profit

    XIRR

  • Setup reminders for email in Apple Mail

    I use Apple Mail to manage emails from multiple accounts because of it no-frills UI which follows the macOS design language to the letter. But then the app is so bare bones that it does not even have a simple reminder option for email to follow up—at least not in a very intuitive way.

    To add a reminder on your email you need to use the Reminders app from Apple. See how Apple tries to hook you up in their ecosystem. Follow the below steps.

    1. In your Apple Mail app select the subject of your email and right click. This is a key step so that the reminder opens up the email that you want to follow up on. Click on Share > Reminders. On iOS you follow the same steps—select the Subject, tap on Share and select the Reminders app.

    2. You will get a dialog similar the one below where you can set the date and time for reminder. Note the Mail icon being shown in the dialog. Click on the Add button.

    3. The reminder should be added in the Reminders app with the Mail icon. Tapping on it will redirect you to the email.

  • Four years as shareholder of Hatsun Agro

    Four years ago after my thorough research—which I can’t remember now—I decided to invest in Hatsun Agro. I knew very little of the company when I started investing in it, apart from that it was in the dairy industry. Overtime I learned that it has been in existence for 50 years and 20 mutual funds had invested in it.

    I think the first time I bought Hatsun Agro, it was at its peak. Because I did not see any profits for a good two and a half years. It was only after the announcement of company giving bonus on Dec 2020 the share price started to move upward. I decided I will accumulate more and made the same mistake of buying the share at its peak the second and third time. The share price has been been in a correction mode for last six months and eroded a good chunk of my profits. For a fleeting moment—Oct 2021—I was kicking index funds behind before crashing and burning.

    Hatsun Agro has been relatively consistent with its dividends—no complaints there—and my dividend yield at cost has improved to 1.1% after bonus issue.

    Returns

    Profit

    XIRR

  • One year with Weekend Investing’s Mi_NNF10 Momentum smallcase

    After trying my hands with Low Risk – Smart Beta, I decided to get serious with smallcase. I chose Weekend Investing’s Mi_NNF10 Momentum smallcase. There were three primary reasons for selecting it.

    1. This smallcase invests in 10 of the Nifty Next 50 companies. These are the companies which I recognise so I was comfortable investing in them.
    2. Stopping my rebalances will mean, at worst, I will be stuck with Nifty Next 50 companies; which shouldn’t be that bad.
    3. This smallcase rebalances every month. There were other smallcases which were rebalanced every week and it was too much for me. Monthly rebalance was something that I could handle. I would have preferred a quarterly rebalance but I guess that’s how momentum strategy works.

    Return

    I have considered below components in my Amount Invested.

    • Subscription fee for smallcase
    • Being fee for smallcase
    • Amount paid while rebalancing
    • DP charges that I incur while selling shares due to rebalancing
    • Dividends (deducted from Amount Invested)
    • Amount received while rebalancing (deducted from Amount Invested)

    For the first six months I did not see any profit. After that the profits have improved and even during the current market correction the smallcase seems to be holding on.

    Profit

    I have renewed my yearly subscription to this smallcase. Let’s see how it performs in its second year for me.