Piquant Observations:

·               One of the smartest investors in India believes in the benefits of portfolio concentration. His top 5 holdings account for 54.67% of his portfolio and his top 10 holdings account for almost 80.00% of his portfolio.

·               This portfolio has the latest market cap and the Price to earnings ratio as spruced from money control. The average weighted market cap of the portfolio is Rs 5276 crores only whereas the average Price Earnings ratio  adjusted for the companies that have no earnings is 52.77! But most of these smaller capitalized companies with earnings visibility and a big moat.

·               It is said that he has exited his holding in Hindustan Oil and increased his stake in Rishi lazer.

·               The underlying theme in the portfolio remains domestic consumption (Titan and Pantaloon,), Infrastructure (Nagarjuna Construction and Punj Lloyd) , pharma (Lupin and Bil Care) and financial Services (Crisil and Karur Vysya Bank.)

·               It is very hard to find a cyclical or commodity stock in his portfolio.

·               Unlike the general investor none of these stocks are large caps in the true sense of the definition. Of Course he could be holding future positions in large caps but the point that I am trying to make is money is made in small and mid caps only. The notional losses that an investor can suffer are also the highest in these stocks. It is very important for an investor not to convert these notional losses in actual losses by selling the shares in despair.

·               Most of these stocks are being held for over 3 years. Companies like Titan, Pantaloon Retail fall in that category. Others like Crisil are being held for more then 5 years and some for even as long as 10 years. – Clearly Time and not timing is the key to these markets.

·               Almost all these companies are looking at a huge external scale of opportunity whether it is a Titan or a Pantaloon a Nagarjuna Construction or Lupin the sheer size of the addressable market is humongous. – Morale of the story “See the Bigger Picture”.

·               We do cover companies with huge scale of opportunity The Equity Desk Report card  section.

·               Rakesh has a special corner for companies that are engaged in consumer, infrastructure and pharmaceutical space. Otherwise he is betting on rising crude prices by buying stocks like Hindustan oil exploration and Praj Industries The overall portfolio is well diversified except that he is not holding any metal or cyclical stocks.

·               These shares are held by Rakesh and his wife Rekha Jhunjhunwala and form a part of his disclosed portfolio. He could be holding more shares through companies, trusts, proprietary accounts which are not in the public domain.

·               To know more about investing legends see the section World's greatest Investors

Basant sir, mubaraka!