Year End: Portfolio Makeover

Continuing with my audit, I would like to present how I have reworked on my portfolio over a period of time. To provide a better perspective, I would start from 2014 upto present. The readers may be interested to know that I had a personal goal to ensure that I was loan free by December 31, 2013, which we achieved by tightening some strings. This also meant that I removed most of my equity investments to fund this objective and hence, it would be prudent and accurate to say that I restarted / rebooted my investment journey from January 1, 2014.

Portfolio – December 31, 2014

p2014

This is more of a real-estate/immovable property centric portfolio. However, the work had begun to re-balance it over a period of time and results are apparent in the subsequent sections.

Portfolio – December 31, 2015

p2015

Equity investments improved, but still Immovable property and Debt instruments took a large portion of the same. This made my resolve much more stronger to re-balance strongly in the coming year.

Portfolio – December 25, 2016

p2016

After some strong re-balancing, I have got equities to joint no. 2 with provident fund. In the coming years, equities will surpass the debt instruments and hopefully  will become my no. 1 asset class.

Some points to note:

  • The total AUM i.e. assets kept growing every year as fresh investments continued. This meant that the amount required to change the percentage is much much higher.
  • The immovable assets category DO NOT include the house I reside in.

Comments/Thoughts/Feedback/Suggestions are most welcome.

Year End: Goals Review

Yayyy !!! X’mas is here and the new year is just around the corner. This is the time of the year when I audit and review my goals. I had described about how I go about planning for my goals in an earlier post. For the first time, I am sharing how I am faring about with my goals. First, the chart..

goals2016

For all these goals, there are 2 buckets:

  1. Primary (Main): This is a combination of Mutual Funds in which we invest regularly.
  2. Secondary (Backup): This is mainly Insurance Policies (yes, I continue to hold them) & Debt instruments (also used as emergency funds).

Some points to note:

  • The retirement corpus mainly comprises of EPF and PPF. Only in the past year, we have a couple of MF running as a replacement for VPF.
  • Our stock portfolio is the secondary / backup for our Retirement Corpus only.
  • The percentage figures are w.r.t. target numbers i.e. inflation corrected numbers as per the expected target year.
  • Gold and Silver for children’s marriage are planned separately and aren’t included in these numbers.

My expectation is to become financially independent ASAP. We don’t plan to take any new loans in the foreseeable future and hope to remain in the bliss of being in loan-free state.

Comments/Feedback/Thoughts/Suggestions are most welcome.

 

Coming Soon… Year End Updates

As the calendar year 2016 draws to a close, I usually reflect on the changes in life, finances, CSR etc. Starting from second half of December, I plan to post separate posts on these different aspects of life that’s close to me. As a reader, what can you expect? Well…

For the first time, I will showcase the rebalancing of portfolio that I am currently in middle of. I also plan to share some progress report on how I am doing w.r.t. my financial goals as well as an overall progress report for the year.

Of course, some news on CSR front as well as some travel experiences should find their way here… So Stay Tuned..

 

Stocks: Lost opportunities of 2015

In 2015, I had some good buying opportunities which I didn’t utilize and landed up loosing some profit making scenarios. Of course, I had my reasons for the same. This is a reminder to take action when possible to avoid such pain points in future.

Sasken Communication Technologies Ltd

Emotionally connected as this was my first job, I follow Sasken closely as fundamentally it’s one of the better small cap IT company. Known to be a good dividend player, I was holding some stocks at 190 and liquidated around 230. I was planning to re-enter around 220, but didn’t do so. Currently, this stock is trading at 380 with a 52 Wk high of 419. Of course, not to forget Rs. 7.50 dividend in FY15 thus far. Definitely on my radar to buy in future.

Cupid

I got this as a suggestion from a friend at Rs. 42. Currently, this is trading around 420 i.e. a jump of 10x. I didn’t take this seriously as I didn’t analyze the company and hence, felt I should wait a little more before I invest. Now I wonder..

Tata Sponge and Tata Motors

I was very tempted to buy when stocks were correcting and reached their 52 Wk lows. An upswing of Rs. 100 in each stock would have given some good cash quickly. However, I didn’t want to be a momentum player and hence, avoided. Tata Motors definitely on my radar to buy in future.

Tree House Education

A darling of research houses, I was watching it correct pretty badly in Nov-Dec. With concerns on promoter holding and now subsequent merger with Zee Learning, I was very apprehensive of jumping on this bandwagon. Of course, if I had bought during the correct phase closer to 140, I could have a made a good Rs. 30 (20%) profit in a month’s time. Again, I wanted to buy into fundamentals and steer away from speculation.

Chennai Floods – Personal Experience

In my previous post, I did write about my experiences with Chennai floods and what we did as a team in the company. While this was a great learning experience with some tremendous team effort, I had a surprise in store at home.

Being a busy-bee and discussing about the Chennai floods at home got my kids interested. I told the impact of the devastation it had caused and shared some images with them.

My kids’ school started a drive to collect material, clothes and other essentials. The first surprise was the ease with which they gave their old unused clothes that were washed and preserved without batting an eyelid. We were pleasantly surprised and sent a silent prayer to the almighty.

The best was yet to come. When the circular about the essentials came, I wanted to test the resolve of my daughter. She is a very stingy lady who doesn’t part with the money that she has saved over years. I told her that she can buy stuff as long as she is ready to fund it.

Bam !! On my face, she gives me a princely sum of Rs. 500 out of her collection. We bought stuff for Rs. 645 (rest funded by dad) and split across the sis-bro combo and was delivered to school today.

My kids are one heck of rockstars and I am damn proud of them !!! Of course, I am also happy that they are able to relate to the condition of the needy and identify that we should be giving to help the needy.. Great start.. Hoping that the same trend will continue in future.. Fingers Crossed..

Chennai Floods – Professional Experience

Chennai and coastal Tamil Nadu saw nature’s fury in it’s most raw, unhindered and pristine glory. The devastation caused to lives was beyond comprehension and the cities were damaged beyond comprehension. This dance of gore by mother nature caught everyone unawares.

Disturbing times call for immediate action and this was pretty evident in the way some of the eminent citizens of Chennai responded to this natural calamity. Though a lot of people were involved, the major drivers were RJ Balaji, Actor Siddarth, Singer Chinmayi and many more such Tollywood personalities.

All these incidents forced us to take some action and man, did we take or what?? AMD CSR team launched a collection drive to collect funds and deliver the necessary essentials to a NGO or better deliver it ourselves. From the onset, we were very clear that we didn’t want to take the easy way out of just paying the money to some NGO.

We were lucky that there were multiple people who had very important information that could aid us in our planning. Ganesh Gopalasubramaniam (GG) had taken a lead ahead of us and visited Chennai and affected areas already with his friends. His experience was very crucial in deciding our course of action.

We came up with Packs viz., Grocery Pack, Health & Hygiene Pack, Combo Pack and Ready to Eat pack, each conveniently designed to be Rs. 400 and solicited sponsorship for the same. I have to admit that I was very apprehensive initially and shared my concerns/initial targets with our good friend from HR.

Man, was I ready to be surprised?? AMD Family opened their hearts and wallets and showered us with a lot of donations. I would say that even though the number of donors was small, the total collection was a wonderful tidy sum.

Next stop, buying these materials and ensuring that the same reaches the needy. Six of us took on the onerous task of buying stuff from our packs in bulk and ensured that every single paisa was utilized most efficiently both from donors’ perspective as well as the recipients. Today, 14th Dec 2015 was a momentous day when we were able to buy a lot of stuff and deliver the same to the NGO. All our purchases were handed over to Goonj, who are doing some commendable job in ensuring that contributions are handed over to the needy.

Special mention to the entire team:- Nehal Shah, Rupa, Ganesh (GG), Shoeb and Uday, while Sree, Muthu and Deepak were with us in spirit.

This is truly our humble contribution and we certainly hope that it makes a small difference in the lives of those who unfortunately had to bear nature’s anger.

Some pics from our exhausting yet satisfying experience.

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