If I do a quick analysis of my portfolio, I have made money largely from companies very high on compliance. The groups are Tata, Murugappa, Sundaram, Birla, Hdfc, Multinational companies.
Not sure whether clubbing Multinational companies in one group makes sense – largely it is the American companies which have shared their prosperity with their Indian shareholders. Companies like Greaves Lombardini – are the ones which immediately come to mind when we talk of MNC failures. Of course we may have been willing to pay a huge premium for equity shares of Coke and Pepsi – but it never came!
I have traded and even held shares like Oracle, Biocon, Hero Honda, Gnfc, Gsfc, Bharti Airtel, – some held for a few years…and shares like Hero since inception. Also held and made money on shares like Reliance, but never had a big holding and now my holding is insignificant – except what is held through Mutual funds that I own.
Even now I find it very difficult to respect companies where the top management gets paid well and has no connection at all with the shareholder’s rewards. Too many such companies.
I know of a CEO who recently ‘sponsored’ the Ganpati event – spending a couple of lakhs. Why did he do it? Well it is the society in which he lives. He actually peddles a low end product and none of his neighbors would ever touch this product!
I know of an auditor who bought a car from a client – at book value and sold it in the market at a higher price. Why? a car is a personal asset if you do not claim depreciation…so this is is an indirect way to remunerate the auditor.
I know of a company which gets a lot of vendors to display their wares and then creates its own software. It is amazing how they can beg, plead, cajole for a demo. Sadly there are too many vendors…you know the story.
I know of a CEO who flew down on a Friday from a foreign location to be in India on Saturday (and flew back Sunday) – this was because he was in a meeting there! Why did he want to be in India? He wanted to be with family and friends for his birthday!
Then of course there are companies which organise ‘meets’ at a time when a senior executive has a personal function. This allows the company to claim all the travel and stay expenses….
When you invest you do keep your ears open. Mine were closed about 10 years ago when I quit active broking – still whispers do come in.
I find it difficult to invest in such companies. Sure I missed investing in some companies which have done well. Still call it bias or whatever I find it difficult to invest in companies that do not pay TDS, PF dues on time. I even find it difficult to invest in companies that cheat vendors, emloyees, financial institutions – as a minority shareholder you stand no chance in hell that such a guy will reward you.
So I come back to the 20 companies where I have 90% of my money. At the periphery there would be Punj Lloyd…and the types….but really I do not know where to invest, so keep putting more money into shares that I already have. After all if the best Fertiliser share is already in my portfolio, I should not be searching for more…na?
Post Footer automatically generated by Add Post Footer Plugin for wordpress.