As I was testing in value investing, I do follow a mix of Benjamin Graham, Warren Buffet and Peter Lynch and have created a strategy for long term nature in order to grow wealth.
Even though by value investing wherein one usually looks after low PE ratio and low PBV, I look at potential entry barriers and other things while searching for a good company.
Though the situation is altogether different in developing countries just inclusion of value investing will lose you money in India as well as different developing countries. Thus there are many things wherein primarily going from top to bottom approach I look at the global market scenario and understand things from a perspective and coming to India, and than sectoral wise scenarios and the policy implications as well as the customer current and latent demands and try to assume the scenario changes that can happen in the country and how will it impact the companies over long term.
So the companies which I have added in my portfolio are the list of 22 companies I consider for longer term period wherein I look at fixed income type as well as growing companies.
Tata Chemicals
GNFC
REC Ltd
Hindustan Copper
Adani Ports
Biocon
ICICI Bank
ITC Ltd
Exide Industries
ICICI Prudential
Indusind Bank
LIC Housing Finance
Delta Corp
Cholamandalam Investment and Financial corporation
TVS Motors
Grasim Industries
Wipro
Relaxo Footwear
GM Breweries
JSW Steel
Adani Green
While all these companies are considering few factors mentioned below
Barriers to entry
Capital allocation
Global shift in Demand and current supply
Long term change in consumption pattern
Investing in sectors which I understand and not going broad
Past 10 years performance
Market share of the company
I believe and do choose companies by giving certain premium in the market and try to look whether the companies are overvalued or under valued and only then invest in companies which I get at a bargain value or fair price.
I mostly avoid cyclicals because I find it difficult to understand the consumption pattern of the consumers. Having multiple festivals it is difficult for me to gauge the cyclicals in the market.
