Coffee Can Portfolio - Week 3

Our 10 year journey continues in Week 3 of our Coffee Can Portfolio. For those who haven't read the Week 0, Week 1 and Week 2 posts, we request you to read those first.

A small recap of our Coffee Can Portfolio

Corpus: INR 96,850 (approx)

Aim: To achieve a returns of at least 15% per annum.

Time Horizon: 10 years

Expected Corpus after 10 years: INR 391,812 (i.e. 305% returns)

Purchase Update:

You'll remember we started purchasing stocks of Inox, PVR and Asian Paints last week. This week we picked more of these stocks at lower prices and even pulled the trigger on Pidilite.

Note: Stocks purchased this week highlighted in grey.

You'll notice that our actual portfolio (below) has more shares of each of the above companies. We've started buying shares since the prices have been coming down. While we do advocate not trying to time the market, it would be foolish to invest the full amount when a fall is expected.

Below is the comparison of our target price v. the current market price of our coffee can portfolio

You'll notice a couple of things:

Nestle, HDFC Bank and HUL have moved closer to our target price.
Pidilite is hovering close to our target price. We decided to start buying around this price in case stock prices do not come down.
Asian Paints and Inox have now moved above our target price. But we've already started buying these stocks so there's no worries there.
PVR is still below our target price. Major portion of our PVR acquisitions have already been completed. We're holding off for the remaining investment to see if there's any fall in the market.

The other stocks are still a little bit away from our target price. However, you will also notice that the stock prices we've considered are not ridiculously low and are based on a small expected drop.

Let's see what our Portfolio would like like based on the prices for 15 May 2020 (compared with our original Coffee Can Portfolio on the right).

You'll notice again that there's no major change in the portfolio. We're still holding off for our target prices so expect the final portfolio to more closely resemble the donut on the right.

We'll keep updating the above numbers as we make the actual investments in the coffee can portfolio. Stay tuned for Week 4!

Our investment rationale for investments in Page Industries, Nestle and Britannia is available here. For the other companies, sign up in the footer below to get early access!