Nemish Shah latest portfolio
Nemish Shah is a marquee name in field of Investing. He is considered one of the top investors of India. In this article we will discuss his latest stock picks and try to understand investment rationale as well. This would give us great insight into the style.
We have analyzed portfolio of other top investors like Rakesh Jhunjhunwala, Vijay Kedia and Dolly Khanna in case you are not aware already. You can view those portfolio using the link shared below.
Read Portfolio of Top Investors and Mutual Funds
Below is the latest portfolio of Nemish Shah we will also update this with time as well.
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Interesting points about Portfolio
In this section I will point out some very interesting observations about the portfolio which would help you understand it better. These points are noted with careful observation of the portfolio. Instead of just looking at the stocks we should also look into sectors as well.
The sectors help us get more insight into areas people are bullish on and you can then explore other stocks from that particular sector.
1. IT and Pharma are still no Go
This is yet another portfolio where we do not see any companies from IT or Pharma. In past we have seen multiple portfolio where we do not have any stock from these two sectors. There is a difference in opinion as well between top investors themselves.
There are few portfolio where we have presence of Pharma to good extend example Satpal Khattar and also portfolio where there is absence of these companies example Dolly Khanna.
This is yet another portfolio where we do not have any representation from these sectors.
2. Finance and Consumption are absent
Finance or better put Financial Services are backbone of any Economy. Many pundits have put money on this theme. They have Financial and Consumption themes as the backbone of their portfolio.
This is not surprising as well because if income of people will increase so do their expenditure and this is the sole theme of consumption theory. This story has also given good returns and still people are banking on it. But Nemish Shah does not have any stock directly playing this theory.
3. Perfect 10 stock portfolio
Most of the investment related books tell you not to have your portfolio too much diversified. They also tell you against concentration as well. So you should have balance between the two.
Most people say you should put 10% of your money in one stock and by this logic 10 is the perfect number of stocks to have in your portfolio. This is what Nemish Shah has done. He has 10 stocks in his portfolio. It is neither too much diversified or concentrated.
We have seen portfolio of top investors (Subramanian P, Hitesh Javeri) who have more than 50 odd stocks in their portfolio but this one is different.
What Portfolio tells about Investment Strategy?
Based on the stock picks I will tr y to replicate the thought process of Nemish Shah. This is not something which is shared by the ace investor. This is my own interpretation based on his stock picks.
1. Focus on Niche Sectors
If you carefully look at the portfolio you will observe that he has picked stocks from some very niche sectors which have only few stocks listed. For example Elgi Equipments is from Compressors sectors which have three major players only.
The second such company is Lakshmi machine works which is in Textiles Equipment. In this sector also we have very limited number of companies listed.
Nemish Shah has picked the top stocks from these obscure sectors.
2. Be Specific about Sectors you pick
Above we shared how he has invested in lesser known sectors. The other important point is the way he has picked other stocks of his portfolio. For example Nemish Shah has two sugar stocks, two textiles stock and two auto ancillary stocks in his portfolio.
So along with those lesser known sectors he has picked these three sectors as he is bullish on them. So he has picked three stocks from these sectors as well.
Conclusion
Nemish Shah portfolio is an excellent read. The presence of lesser number of stocks and focused sectors have made things interesting. You can explore those lesser known sectors to know about other companies and include them in your stock watch list.
In next set of articles we will continue with other top investors and look into their stock picks.