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


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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.