Interesting thoughts on Apple
In an earlier post, I had mentioned about coat tailing…wherein you follow a seasoned investor into a particular stock.
Prashant Jain of HDFC Mutual Fund is one of India’s best mutual fund managers.
In his recent letter to investors, he urges them to buy stocks NOW .
It would be interesting to see where he has put his own money to use.
He runs HDFC Equity fund with around 10000 Crore in assets.His top 10 holdings (as of April 30,2012) are as follows:
Company % to NAV
ICICI Bank 5.44%
ITC Ltd 5.35%
TATA Motors LTD DVR 5.29%
Infosys Ltd 3.85%
Bharti Airtel 3.34%
TATA Steel Ltd 3.01%
Bank of Baroda 2.97%
He has a huge bias for banking stocks with 20% of his fund in them.
Also, interesting to note that cyclical sectors such as cement, sugar etc are completely missing from his portfolio
What is also interesting is the huge position in Tata Motors DVR.But thats another blog post !!
Rakesh Jhunjhunwala has been on a buying spree (more at BusinessLine)
Warren Buffett in his younger days followed a technique called coattailing
In this method, you usually follow an experienced investor into a stock.You assume that the experienced investor knows what he is doing and financial fireworks will commence shortly after the experienced investor enters the stock.
Are there such investors in the Indian equity scene that one can follow?
I believe there are.
Take for example, Dilipkumar Lakhi.
He is a very well known diamond exporter from Mumbai (see article). He is quite renowned for his shrewd stock picking prowess.He picked up Uflex very cheap in Dec 2009.(still owns around 4% assuming fully diluted)
Now he has picked up around 6.75 Lakh shares of Dhanbank around Rs.70.33 . (27/02/2012). Another related party Girdharilal Lekhi has picked up 5.4 Lakh shares around Rs.63.66 (23/02/2012)
Dhanbank faced a lot of turbulence recently due to the ouster of its CEO Amitabh Chaturvedi. Despite this ,the stock is up around 22% since then.Maybe Dilipbhai and the markets know something we don’t !!