My Investment Philosophy

 Every investor believes in how the world is going to move and reach a goal in future. Some may get it right, while some may not.

You can look at investment (particularly in bad times) that the world is doomed and all are going to die. It therefore does not matter if you have 1 Re or 100 crores. On the other hand if you believe life will turn and get to a new normal, invest heavily so that when boom returns, you are on top. (eg covid). In such cases, the pent up demand shoots up, with people having lived a strict no spend life. Further Gen Z are of believers who wants to live today - to hell with future. AI - India may be bad- but we can be supporters of AI, also, we have a large young population which can supply nurses, electricians, plumbing etc.

All this has influenced my thought process.

For what it is worth, my logic of investment is as follows. Follow at your own peril even if you want to.

Stocks My investment philosophy 1) Data centers and AI to be future 2) Cloud computing large 3) 1 & 2 requires huge computing power and thus power is essential 4) Power, power distribution and electrical equipments in demand 5) Solar power key to increased power 6) Infra and pharma will be there for job generation and health 7) Beauty and beauty products and clothes as people want to look good 8) Fintech as ppl shun cash 9) To move all this around logistics & transportation 10) Defence to safeguard above 11) P2P lending (RBI regulated) -Gen Z 12) AI support services 13) Physical labor provider (Urban company) 1) Data centers  HCL LTIM Tanla Route Techno Electric Kaynes 2) Power Tata power NTPC Havells Epac Msumi SWSolar Suzlon CG Elect 3) Infra KNR (infra) Kaisen Nerolac (paints) Heidelgberg (cement) 4) Pharma Zydus SRF KIMS Indraprastha  5)  FMCG Emami Nykaa Ambika 6) Fintech Paytm jio Fin Oracle 7)Logistic TCI Express Swiggy zomato Zepto 8) Defence Bharat Forge Drone companies 9) Auto IMPL (auto parts) Amarraja (batteries) 10) Bank HDFC LIC HDFC life HBD ICICI 11) Mkt CAMS BSE/NSE CDSL IGIL Nobody can predict future. My selection is based on a)  likely trends i expect b) promoter shareholding >50% (skin in the game) c) past sales and pbt record of 15% growth and 20% growth respectively d) PE lower than 25 e) Debt/Equity is <0.5 f) Market Cap of >1000 crores ( large companies only)  Too many data can cause Analysis - Paralysis

Even top investors bet on 10 different things. maybe 1 or 2 works, but their investment is so large that it makes up for the other losses. I heard that a company like Sequoia invests in many companies and 85% go dead. One google investment may make millions for them.

 

Mutual Fund My investment Philosophy 1) more debt funds as you age 2) Large cap, multi asset - steady and diversified 3) Mid cap and small cap for alpha 4) Sector - for alpha 5) Index fund - sleepy investing 6) Banking- more funds around more needs 7) Overseas diversification 1) Debt ABSL corp bond Absl money mgr ICICI liquid Icici ultra liquid Hdfc liquid ABSL Floating ABSL life saving Bandhan gilt Axis all season Nippon india AAA PGIM arbitrage DSP Arbitrage DSP Fmaturity ABSL long duration HDFC bal adv fund HDFC corp bond Nippon nivesh lakshaya ICIci Lterm Bond ICICI bal advtg Edel gov. sect ICICI Gilt sbi magnum UTI money mkt 2) Large cap Axis blue chip hdfc top 100 icici multi asset 2a) Hybrid PP Con hybrid Baroda con hybrid HDFC hybrid ICICI eq and debt ICIcI multi asset SBI multicap pp Flexi PP ELSS 3)mid and small DSP ABSL 4) Sector Nippon pharma SBI healthcare Nippon banking 5) Index UTI nifty UTI next nifty SBI Sensex 6) banking Nippon banking 7) Overseas Edelweiss china Edel weiss Europ kotak FoF-US Mosl S&P-US