Coffee Can Portfolio - Week 1
Updated: May 15, 2020
Our 10 year journey continues in Week 1 of our Coffee Can Portfolio. For those who haven't read the Week 0 post, we request you to read that first here.
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)
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:
Page Industries, Britannia, Pidilite and Inox are moving closer to our target price.
Asian Paints and PVR have already fallen below our target price. But seeing the overall trend in the market, we're still holding off on investing since we want to make the most of our investment.
The other stocks are still a little bit away from our target price. Again, while we do advocate not trying to time the market, it would be foolish to invest when a fall is expected. 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 8 May 2020 (compared with our original Coffee Can Portfolio on the right).
You'll notice that there's no major change in the portfolio - maybe a 1% swing here and there. 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 2!
Our investment rationale for each of the companies is coming soon. Sign up in the footer below to get early access!