My portfolio value decreased by 8.2% as
of 31st Dec 2015 since the beginning of Jan 2015. Overall, 2015 was a lousy
year for my portfolio both absolutely and also relative to the S&P
performance (+1.9%). There were few costly mistakes (at least it appears so)
by investing early in the Indian banks and Iconix brands lead to
the poor investment returns.
Any one year performance of quoted
prices of the businesses in the portfolio is irrelevant, what relevant is the
underlying business performance. All the businesses in the portfolio had a
decent performance given the industry conditions, all have reinvested their
profits, paying out dividends and buying back their shares where they are
appropriate.
Major contributors for the performance
were,
Infinite Computer Solutions (+54.5%)
PBF Energy (+28.6%)
Major detractors were,
Iconix brands (-55%)
Jammu and Kashmir Bank (-39%)
South Indian Bank (-32%)
Here are the top 10 holdings in my
portfolio for 2016. You may have noticed some of the investment write ups and
my reasons for the below holdings in this blog. The portfolio companies for
2016 are more or less the same; solid, have favorable prospects, cheap and
diversified. I expect the returns for 2016 should be better than 2015 although
one year performance is too short to measure any success/failure in the
investment business.
The holdings below are all have a durable businesses, have large opportunity to grow both revenues and profits, run by competent managers and priced cheaply relative to their assets and current/future earnings.
COF, GM, JPM, PNC & WFC warrants (18.7%)
Infinite Computer Solutions (8.3%)
Jammu and Kashmir Bank (7.1%)
South Indian Bank (6.8%)
Fairfax Financial (6.4%)
Gap Inc (6%)
Leucadia National (4.5%)
Iconix Brands (4%)
MFC Industrial Ltd (3.8%)
PBF Energy (3.7%)
As always, feel free to contact me if
you have any questions.
