Rohit Ojha's Investment Journey: Insights and Strategies
Rohit Ojha embarked on his investment journey in 2012 after gaining insights from his father and cousins. He diversified his portfolio, learned from his successes and mistakes, and aspired to understand various sectors independently. With a focus on risk mitigation and quality businesses, Rohit's portfolio setup reflects a strategic approach towards long-term wealth creation.
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Investment Journey Rohit Ojha VP Chintan Baithak 2016
How it started Heard about stocks from my father in 2008 when I was in college. Heard discussions with cousins who said Maine bola tha bech do . Father held L&T, UltraTech, Reliance, tata steel etc since 90s. Started seriously reading in 2010. Stumbled upon TED and read all the funda threads. Started investing only in 2012 after getting a good understanding about basic aspects
Phase 1: 2012-2014 Invested in midcaps based on return ratios. Avoided big mistakes. Lucky start ! Found VP and cloned seniors. At the same time subscribed to an advisory service. But was learning all the time. Got success in Mayur, Dhanuka, Poly Medicure, Kaveri, PI, Alembic, Shilpa. Big winners- Ajanta, Avanti, Page, Repco, Gruh Big learnings Need to work with smaller companies to make big money. PE re-rating Need to bet big. Increased equity allocation in 2014 Portfolio construction Pay for quality and average up
Phase 2: 2015-16 Realized that I had luckily made money earlier but didn t appreciate how good some of these businesses were, even though they were so well discussed PI Industries, Shilpa, Alembic Pharma. Blown away by Pharma Basics presentation by Ananth Shenoy and by discussion on Alembic and Shilpa Started to understand more about great businesses and management
Aspiration Understand a range of businesses across sectors. Less reliance on fellow investors- Independent thinking. Understand different styles of investing- Arbitrage, contra. Compound at more than 30% CAGR. Plan to go full time but still far away from ready
Personality traits Risk mitigator Invested most of the savings from salary so risk aversion was high Always invested in quality businesses and managed to avoid big losses except once in Hawkins. Exit on first signs of red flags eg Kaveri Avoid companies giving aggressive guidance eg Kellton Tech Comfort zone Had been a cloner in well discussed businesses. Always followed the lead to build my conviction. Not done a PhD in any business yet, but slowly improving. Have invested in consumer and pharma businesses only No contra bets yet
Portfolio setup Earlier 8-10 stock portfolio with minimum 5% allocation. Recently pushed to 12 for few small caps with very small allocation. Long term (5 year view): 70% in 5-6 businesses Opportunistic bets (1-2 year view): 20% in 3-4 businesses Experimenting with smallcaps: 10% Never able to hold cash. Need to work on this 10% of portfolio is leveraged
Excited by/Must haves/Ignorables Excited by Businesses moving up in value chain Large capex completed/planned Management that constantly strives to make the moat stronger. Capital allocation skills of management eg. Ajay Piramal IP driven businesses- Pharma, some niche manufacturers Must haves Growing Mid/small caps with large and growing opportunity size Low debt or strong trend of debt reduction, High RoE, ROCE At least 15% growth in worst case scenario. Ignorables Promoter selling/pledging in small amounts as long as business is delivering
Buy/Sell decision Buy decision Long term bets- Visibility of >20% CAGR in 2-3 yrs or a hockey stick moment within next 5 yrs. New idea has to be better than existing ones Opportunistic bets- Combination of techno funda Average up if company keeps delivering and valuations sane Now sell when valuations are very high and growth starts to slow down. Eg Page at 14000, Hawkins at 2500 (in this case growth never happened), Gruh at 260 there is a better opportunity at that price eg shift from Ajanta at 1400 to Alembic at 600, Page to Syngene Management makes a bad move eg Kaveri diworseification Don t look too much into nifty levels
Process Read concalls, whenever available. More importance than annual reports. Try to attend concalls of all holdings. Find it difficult to get a high confidence without concalls. Less number driven. Understand how management has strategically built a strong business over last 3-5 years Studying competition gives good insights Read research reports to understand consensus views/estimates Maintain decision log with reasons to buy/sell
Natural Skills Excited by understanding the Industry/Business issues/challenges and competition mapping Never done a Management Q&A but very interested in starting with Syngene. Bad at balance sheet analysis
