Anuj Anantrai Sheth latest portfolio
In this article we will look into latest portfolio of Anuj Anantrai Sheth. We will also analyze the portfolio to figure out uniqueness of it. We will try to understand how it is different or same compared to other top investors like Rakesh Jhunjhunwala, Dolly Khanna and Vijay Kedia.
In case you have not read portfolio of other top investors of India then I would suggest you to read below article as well along with this one. That article lists portfolio of top investors and Mutual Funds of Indian market.
Below are the latest stock picks of this ace investor. I have also outlined the sectors along with stocks. This will give you idea of sectors on which Anuj is bullish on.
|Bannari Amman Spinning
|Jamna Auto Industries||Auto
|The Hi Tech
Interesting points about Portfolio
Below are some interesting points about the portfolio of Anuj. These points help you understand his stock picking much better and present you some facts which are hidden inside the company list shared above.
1. Auto Ancillary is poised for Growth
Auto Ancillary caters the Auto Industry. Indian Auto Industry is growing. The two wheeler market, the four wheeler market (both personal and commercial) is on rise. This trend will continue with increase in spending power of Indian.
The Growth of Auto Sector will be beneficial for growth of Auto Ancillary sector as well. Indian companies also export these parts to other countries owning to cost benefit. This will propel the growth further.
Based on these facts the sector will grow so Anuj Anantrai Sheth has picked two stocks from this sector alone in portfolio of 8 stocks. This makes the sector representation 25%.
2. Pharma is back but NO IT or Finance
IT and Finance are two dominating sector present in Nifty. Finance (comprising of all Financial Services) is a major sector for any Economy. Well some investors have multiple stocks from this sector while some have chosen to stay away from this sector.
Same is the story of IT sector as well. Over the years it has been one of the defensive sector with good returns to investors. But many investors have chosen not to invest money in this sector.Pharma is also in same league but Anuj has one stock from Pharma sector in his portfolio.
3. Two companies from Same Management
We have not seen many portfolios which have two stocks from same management yet this one has one Sugar stock and one textiles stock from same management. This does put risk on the portfolio as you are trusting same management.
But this also shows that investor has full confidence on the management. For example many new investors may easily invest in more than one HDFC Group of Companies based on their past performance or management pedigree. So this is question of individual preference.
What Portfolio tells about Investment Strategy?
In this section we try to understand the thought process of the investor based on the portfolio. These are not shared by the investor himself. This is my own understanding based on the stock picks. So it may not reflect the original thought process of the investor.
1. Identify Growth Sector and Bank on it
This is one clear message from above portfolio. The investor identified growth sector first. In his case he settled with Auto Ancillary as one of the growth sector. After identifying the growth sector he started looking for stocks in this sector.
He picked two stocks which means good exposure to one single sector which he thinks was well poised for growth. Note he has stocks from other sectors as well.
2. Cyclic Business is also part of portfolio
Sugar and Textiles are two sector which can be described as Cyclic in nature. You may have witnessed long period of inactivity and then sudden spike in stock prices of these companies.
There is something special in Textile and Sugar sectors. If you have gone through the previous portfolio shared then you must have realized that many top investors have invested in one or more companies from these two sectors.
You can prepare list of all textile or sugar stocks present in all portfolios and create your own stock watch list. That would give you excellent starting point on these two unpredictable sectors.
Anuj Anantrai Sheth has unique style of clubbing growth and cyclic sectors together to form his portfolio. The number of companies is less than 10 which according to many books and analyst is good number of have.
In next article we will discuss about portfolio of yet another top investor and mutual funds.