Sunday, 1 April 2012

Moving Towards Our Ideal Portfolio

What we meant by ideal portfolio would come as a shock to many who preaches diversification.
(Take a look at the changes in our portfolio composition till date and you will know why.)

We have been really busy paring down some of our minor stakes and using that to reinvest in our most compelling ideas. Though some of our minor stakes are still way below our valuation, the opportunities at hand, we believe, provides far greater upside.

Capital allocation is always about allocating resources to the best opportunities. Hence, we never understood the rationale of putting one's resources over a spread of ideas. For us, the concentration of great ideas is the key towards maximizing returns.

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