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Author: Naveen

  • Three years as shareholder of Alkem Laboratories

    Three years as shareholder of Alkem Laboratories

    Three years ago, I made the decision to invest in Alkem solely based on its inclusion in the Nifty Next 50 index. Without conducting any further research or analysis, I relied on the belief that companies included in Nifty Next 50 index are generally considered to be well-established and stable. What I didn’t consider was that Alkem can also be removed from the Nifty Next 50 index.

    Alkem is now no longer part of Nifty Next 50 index and its underperformance vis-a-vis Nifty 50 index since last two years had made my palms sweaty. But there has been a very recent uptick in the share price where it has gone up by almost 25% in last one month. While I would have made 10% XIRR with Nifty 50 Index I am now at 22% XIRR with Alkem. Let’s see how long the party lasts.

    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 yearDividend yield at cost
    2020-210.92%
    2021-220.92%
    2022-230.87%
    2023-240.22% *
    * Data as of 26-Nov-2023

    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

  • The Windows 95 map that shook the world

    A wonderful anecdote on how Windows 95 timezone map created chaos!

  • Three years as shareholder of SRF

    Three years as shareholder of SRF

    I started invest in SRF three years back, but it is only in this fiscal year that I have significantly increased my investment in SRF. This fiscal year alone I have invested more than 65% of my total investment. This makes my investment very young.

    Investment through the years

    Returns

    During the initial days my investment in SRF was comfortably beating Nifty 50 Index. But as I decided to increase my investment and SRF’s share price going sideways, I am now barely beating Nifty 50 Index. SRF generally announces dividends twice a year, but nothing to be talked about.

    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 yearDividend yield at cost
    2020-210.44%
    2021-220.53%
    2022-230.30%
    2023-240.13% *
    * Data as of 5-Nov-2023

    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

    At XIRR of 8%, I am underperforming Nifty 50 Index which would have been at 11%.

  • Long term equity returns

    A wonderful analysis on long term investing across 15-year period starting 1995. Below is my favourite paragraph. Why? It emphasises how uncertain long term equity returns are.

    Imagine being the investor who started in 1995. Seeing your portfolio exceed 1 Cr (₹ 10 Million) in January 2008, 14 years into your investing journey, only to see it plummet 60% to 40L (₹ 4 Million) late in 2008 before finally coming back to 89L (₹ 8.9 Million) by the end of 2009.

    The 12% Myth: Estimating Long-Term Equity Returns
  • Six years as shareholder of ITC

    Six years as shareholder of ITC

    After severely underperforming Nifty 50 Index for five years, my investment in ITC is not only in profit but also beating Nifty 50 Index. What a turnaround! I had only heard about such things, over the past year I have witnessed it. Over last fiscal year I have significantly increased investment in ITC, so much so that over 66% of my investments b v has come in last 1.5 years.

    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 yearDividend yield at cost
    2018-191.91%
    2019-201.08%
    2020-214.81%
    2021-223.93%
    2022-232.98%
    2023-242.81% *
    * Data as of 6-Oct-2023

    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:

  • Five years as shareholder of Havells

    Five years as shareholder of Havells

    Investment through the years

    Returns

    Profit

    XIRR

    Related reading:

    Note: I missed including some of my Havells share purchases in previous articles. These are rectified in this post, so there will be difference between my previous analysis and this one.

  • Seven years as shareholder of Asian Paints

    Seven years as shareholder of Asian Paints

    Seven years as shareholder of Asian Paints but with 90% of that investment coming in last four years, my analysis should be taken with a pinch of salt.

    Investment through the years

    The foolish decision of not investing anything during FY 2017-18 and FY 2018-19 still haunts me.

    Returns

    The dividends continue to be, meh!

    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 yearDividend yield at cost
    2016-170.19%
    2017-180.70%
    2018-190.81%
    2019-200.96%
    2020-210.24%
    2021-220.73%
    2022-230.64%
    2023-240.73% *
    Data as of 18-Sep-2023

    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

    Last one year has been tough on my investment in Asian Paints. After almost 3 years of beating the index—that too consistently—the outperformance has been been replaced with volatility and underperformance. It seems like the Russian invasion of Ukraine and Grasim’s entry into paints business has finally started showing up. At 15% XIRR I am trailing the Nifty 50 Index by 3%.

    Related reading:

    Note: I missed including some of my Asian Paints share purchases in previous articles. These are rectified in this post, so there will be difference between my previous analysis and this one.

  • Six years as shareholder of VIP Industries

    Six years as shareholder of VIP Industries

    After putting my investment in VIP Industries and forgetting about it for two years, I decided to put in some more money this fiscal year. As you see below 61% on my investment has come in this fiscal year, so my investment in VIP Industries is still young.

    As far as returns go I am beating the Nifty 50 Index. Yay!

    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 yearDividend yield at cost
    2017-180.95%
    2018-191.70%
    2019-201.36%
    2020-210%
    2021-221.01%
    2022-231.81%
    2023-240% *

    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:

  • Six years as shareholder of Pidilite Industries

    Six years as shareholder of Pidilite Industries

    With 70% of my investment in Pidilite Industries coming in the last 2 years, the title may seem a bit misleading. My investment is still very young and it does have a hangover from the COVID market crash and its recovery.

    I continue to be lucky with Pidilite. It continues to be my most consistent performer. Like I said in my last year’s blog, even at its worst point my XIRR was 6% which is similar to fixed deposit returns.

    Since last 6 months, my returns have now almost merged with Nifty 50 Index returns. I am hoping that in the future they will beat them.

    Dividends, on the other hand, have been measly. My dividend yield at cost for FY 2022-23 was 0.37%.

    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 yearDividend yield at cost
    2017-180.40%
    2018-190.68%
    2019-200.82%
    2020-210%
    2021-220.38%
    2022-230.37%
    2023-240% *
    Data as of 29-Jul-2023

    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 Pidilitie share purchases in previous articles. These are rectified in this post, so there will be differences between my previous analysis and this one.

  • Six years as shareholder of Marico

    Six years as shareholder of Marico

    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 yearDividend yield at cost
    2017-180.79%
    2018-191.50%
    2019-201.66%
    2020-212.17%
    2021-221.91%
    2022-230.85%
    2023-240% *
    Data as of 23-Jul-2023

    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.