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The first quarter of 2013 has been completed and Nifty 50 had given return of -4.30%. Nobody was expecting a negative return for this quarter especially after the January rally.

Well, you cannot predict the market and invest looking at the day to day activities. Delhi brother has an access to our platform and is happy with his returns from last 5 quarters.

Let me remind you over here that all the decisions in regards to Delhi Brothers portfolio are taken solely by Delhi brother and is responsible for his investments decision. 
We just asked Delhi brother to invest in the investment grade companies authorised by Value Operations platform and do his own due diligence with the help of our platform which helps him to take evidence based decisions.

There were many questions raised by many investors on the blog to get the clear picture of what are the Delhi Brothers Goals? We will be happy to share with you his mission in investing equity.

Our Delhi brother had a Rs 1,000,000 in his fixed deposit that he was interested to invest in the Equity. He has a time horizon of 15 years and has his personal goals that he is not comfortable to share in
public which we respect his privacy.

He needs Rs One Crore after 15 years to make his dreams come true. This represents he need to earn 17% compounded every year to reach his goal. The path to become crorepati is hard and needs lot of discipline but not impossible.

He is looking at to build a portfolio of 10 businesses and is in no rush to buy them all together at one time. “I want to survive and earn 17% every year to achieve my goals and I don’t have any extra money to chip in the market…”

He is also looking to invest in different sectors and do not want to hold more than 2 companies from the same sector.

I also tried to find that, why he invests even amount in all the companies when they trade at different margin of safety (Discount)? As that is not the way we advocate investors to invest in the market.

“… I know you are talking about Swaraj Engines over here. I truly believe that eventually in the long term price always follows its intrinsic value of any business. The charts from your platform with forecast of intrinsic value really helped me a lot to take my investment decisions. When I invested in Swaraj Engines (Rs 383) we were expecting its intrinsic value for the year end 2013 to be Rs 405 and Rs
540 for the year end 2015. So I was expecting 12.25% of compounded return for the next 3 years excluding dividends for the year. Today value operations platform expects its intrinsic value to be Rs 475 for the year end 2015. This has broken my heart as my expected return has fallen down to 7.50% compounded for the 3 years horizon. Still compelling as those returns are excluding dividends and combining both is still giving me better than fixed deposit returns. The time to time update in forecast intrinsic values by Value Operations platform helps me a lot to keep a track of my investments. Also I am sticking to my investments as there are still no good opportunities available in the market.”

 

“As you always mention to invest in the businesses where you witness a growth in the intrinsic values,
whenever I find any investment decision, I look at the forecast growth in the values before taking any decision…”

Thanks Delhi brother for sharing your insight with us all and we hope it will be helpful to all the investors who visit our blogs regularly.

Name

Purchase Price

No of stocks

Current price (28th march 2013)

Total amount

FAG Bearings

Rs 1046.70

95

Rs 1470.10

Rs 139,659.50

Amar Raja Bat

Rs 101.50

986

Rs 274.55

Rs 270,706.30

Swaraj Engines

Rs 383.05

261

Rs 395.45

Rs 103,212.45

Axis bank

Rs 935

107

Rs 1300.70

Rs 139,174.90

Mind tree

Rs 693

216

Rs 914.55

Rs 197,542.80

J&K bank

Rs 1300

115

Rs 1191.70

Rs 137,045.50

Cash

Rs 455,100.22

Total

Rs 1,442,441.67

Delhi brother’s portfolio had managed to grow its portfolio by 2% for the first quarter of 2013 that represents almost 300% better return compare to index returns. This return is also far better than top mutual funds returns in the quarter (As all of the equity funds are in the red!!).

I won’t take all the credit of Delhi Brother’s success so far because I think it was his discipline and evidence based research (Value operations platform) helped him to get those returns!!

Good work…!!