Thread by @dmuthuk

Those who’ve been tracking my portfolio and investing method, please read the below thread carefully.

I’ve been following focused investing, owning not less than 10 and more than 15 stocks. My personal preference has been 11. I already own 10; with NSE listing would become 11.

It’s a decade since I’ve been following focused investing and wanting to try concentrated investing for a while. For Buffett and Munger, concentration means 6 and 3 businesses respectively. My personal preference is 9.

I’ve been pondering over this for last few months and wanted to pull the trigger today. This means I can own only 8 out of current 10 stocks as I’m keen to add NSE when it gets listed. All the 10 businesses I own are gems and it was emotionally difficult to eliminate two.

So I applied logic instead of emotions. In a concentrated portfolio, I neither like over leverage nor lending. So the best lender of the country, HDFC Bank has to go. I’ve been owning this stock for close to a decade and it was such a painful decision to let it go.

I prefer B2C anytime over B2B. 3M India is the only company in my portfolio which was more of B2B and less of B2C. Another painful decision. So sold today HDFC Bank and 3M India and topped up the proceeds amongst existing 8 holdings.

My current Portfolio (in alphabetical order)

1)HDFC Life
2)ITC
3)Johnson Controls Hitachi
4)Nestle
5)P&G Hygiene
6)Pidilite
7)Titan
8)United Spirits

9th would be NSE, as and when listed.

These aren't stock recommendations. Any decision you take is at your own risk.

From focused investing of 11 stocks, moving towards concentrated investing of 9 stocks. I don’t have courage to go lesser than nine. Though no compulsions, I make it a point to update any changes made to my stock portfolio. Hence this thread.