Thread by @saxena_puru

1) Portfolio summary - May-end



Rentals

Return since 1 Sept '16 -

Portfolio +178.92%
+22.07%
+40.24%

2) CAGR since inception (1 Sept '16) -

Portfolio +31.46%
+5.46%
+9.44%

YTD return -

Portfolio +102.34%
(-)9.87%
(-)5.77%

Contd...

3) Commentary -

May turned out to be a very good month for my portfolio and after announcing strong Q1 results, many of my stocks rallied sharply!

During the month, I made a few changes and notably, after owning and for several years, I reluctantly parted...

4) booked my gains and parted ways.

In all honesty, I caught myself feeling slightly attached to these two companies but given the rising Sino-American tensions, decided to close out these positions.

Right now, my portfolio is heavily concentrated in the secular growth...

5) stories in the ecommerce, fintech and software space and strongly feel that these areas will continue to grow for years.

After all, both consumers and companies are now heavily dependent on my companies' services and their dominant positions should continue to reward...

6) long-term shareholders.

Although I was always confident about my companies' prospects, must confess that I never expected such a parabolic rise in their market caps!

Perhaps the market is currently over-optimistic about these businesses or maybe it is discounting better...

7) post-COVID prospects? I don't really have a firm view and am not smart enough to know why these stocks have been bid up so much!

In any event, I'm not complaining and as long as these companies keep announcing strong operating results, I'll stay the course.

Once the....

8) economy opens up and the fear of the virus recedes, it is likely that my secular growers will come under pressure and they may even face a sharp/vicious pullback.

Timing such events is extremely hard and whenever we do get a violent pullback, I'll just ride out the storm...

9) Elsewhere, I've (once again) picked up a few recovery plays and hopefully, if the reopening of the economy goes smoothly, they will catch a bid.

In order to protect my capital, I'm keeping some of them on a tight leash and may exit on weakness.

Turning to the broad...

10) market, I am of the view that (unless we get new lockdowns) March-end was *the* low of the sharp but swift bear market and we are now in the very early stages of a multi-year bull market.

At this stage, I don't know when this bull market will end but if history is any...

11) guide, it should continue for at least 3-4 years.

From a big picture perspective, US equities are still in a *secular* bull market and if history rhymes, this upswing may continue for another decade.

Yes, the economy is bad and yes, most are fearful but this is how...

12) bull markets begin - amidst dire economic news and widespread scepticism.

For my part, I monitor my trend filter closely and currently, it is suggesting that both the primary and short-term trends are UP.

In closing, I'm very pleased with my portfolio's returns and wish..

13) to remind everyone that they've been achieved by good old stock picking - nothing fancy - no options, no derivatives, no structured products - just investing in mid to large-cap companies.

Furthermore, I'm no genius and believe that anybody who applies sound principles...

14) when investing can outperform the broad indices which are just an average of excellent, mediocre and poor businesses!

If one's portfolio is only comprised of the very best companies, how can it *not* do better than the average?

I hope this has been helpful 🙏