·          One of the smartest investors in the country believes in the benefits of portfolio concentration. His top 5 holdings account for 57.719% of his portfolio and his top 10 holdings account for almost 83.03% of his portfolio.

·        The recent stock market crash this portfolio has seen a notional loss of around 40%. From the January highs

·        This portfolio has the latest market cap and the Price to earnings ratio as sourced from money control. The average Price Earnings ratio  adjusted for the companies that have no earnings is around 27 times! But most of these smaller capitalized companies in sectors that are scalable.

·        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 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 4 years. Companies like Titan, Pantaloon Retail fall in that category. Others like Crisil are being held for 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 TheEquityDesk Report card June 2008 section.

·        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