Slow Compounding

Portfolio Return! The reason why people fear showing their portfolio. It is even more difficult to sell any model portfolio with full transparency.

Learnings! It have been a more than year, we are posting important concept in simple way. It's just a starting, we would like to continue this in future. If you have learned anything from this channel, please share with others in the comment section. It will be helpful for others to pick something that you have learned also. If this channel has been of no use, please help us to understand the area that we can cover. (Except stock decision).

Garden & Caretaker when it rains, you do not need to water your plants. But it is important to water regularly other time. The growth of India is now a known story. In normal course, if no calamity happens and geopolitical scenario doesn't deteriorate, India has huge potential to grow. Future is unknown and uncertain. . By speculations, we decide whether to take umbrella. It's sometimes for rain and other times for Sunlight. SC portfolio has been built to take care of upcoming sunlight and rain..both ways.. Probably, next year, we will take a call if any changes are needed for fresh money. Changes (if any) that will be made, will be shared with the community with reasoning! P.S. This is a boring garden (portfolio), we take unusually longer time and believe in (slow) process. But update will be timely.

Credit Card of the Country! Many of you use credit card. The concept is super simple. You do the expenditure and then pay later. What is the major advantage? You get more capital without any cost*. For companies, it is the short term working capital. Disadvantages If it is used above your monthly earning, you have to pay interest. So, any expenditure above your monthly income can burn a hole in your wallet. Yearly basis, the country does the same. At first, the Govt. does the expenditure and then collect income through taxes and many other sources. If expenditure is more than yearly income, govt incur deficit. Since it is calculated on yearly basis, it is called FISCAL DEFICIT. Fiscal deficit is not bad, because deficit indicates expenditure is more than income. If expenditure is made on cash generating asset, it is good for the country. During the budget, the fiscal deficit target is typically announced. Just like the companies' accounting, cash inflow and outflow can be manipulated. If manipulation is done to meet the target, it may appear alright now, but the patch does not last long. In a way, you operate your personal expenditure, or company does the accounting, and the country keeps a track of cash activities are not very different. Every year when these database is published, it makes lot of buzz. Just like the companies. If you are passive Investors, it is relevant to track all these. But it doesn't help active Investors much. P.S. Active Investors do not need to track macro economy, they just need to find the company that does slightly better than average companies in boom and bust.

Why so? Have you ever wondered why do we keep checking share price? Spare some time and watch this to understand in depth. Without doing multitasking. https://youtu.be/-jXM4NymIcA

Divis Lab Revenue up by 17% Expenses up by 26% Profit up by 26% (YoY) Revenue down by 9% Expenses remained flat Profit down by 21% (QoQ)

Aarti Industries Revenue up by 47% Expenses up by 57% Profit up by 14.5% Operating margin is under pressure, 17% (vs. 20.5%) Moving forward, depreciation will hit because of huge capex Aarti Industries have/will do!

Natural capsules Ltd Revenue grew up by 72% Expenses grew up by 64% Profit jumped up by 2.5 times

Abbott India Revenue grew up by 7.5% Expenses grew up by 8.5% Profit up by 5%

Time to read Annual Reports..

Pidilite Revenue up by 60% Expenses up by 60% Profit up by 65%

An Interesting observation Last 3 years, return profile: Parag Parikh flexi cap: 26% CCP, Marcellus PMS: 23.3% Nifty 50: 17% I will not be surprised if Marcellus CCP underperforms PPFAS flexicap fund because of its hefty fees over long term. We should never forget that fee matters! Full disclosure: Heavily invested in PPFAS flexicap scheme. Other mutual funds where I have investment: SBI small cap fund: 33% Nippon india small cap fund: 35.5%

Sequent Scientific Revenue up by 6% Expenses up by 13% Reported net loss due to exceptional item. Reason: Inflationary issues for Turkish subsidiaries. And fire in plant Those who are invested in this company should keep a close watch! Not invested.

ROE Return of equity is the prime measure of banks efficiency. ROE of major banks on 10 Y basis are here: HDFC Bank 18% Kotak Bank 13% ICICI Bank 10.7% Axis Bank 10.6% Federal Bank 10.6% Lunch break of India 7.4% Bank of Baroda 3.3% Canara Bank 2.2% Punjab National Bank -1.9% Bank of India -2.3% Bank of Maharashtra -4.4% (Data Source: Marcellus' July 2022 Newsletter)