Invest in high conviction stocks at early stage
Invest in high conviction stocks is a first investment strategy that we can learn from Prof.Mankekar. He invested in stocks like Pantaloons and Talwalkar based on conviction and earned a hefty profit. He has extraordinary skill and vision to identify future business potential.
In 2001, when the future group announced about of launch of Big Bazaar as a hypermarket chain. Mr.Mankekar visited Big Bazaar mall out of curiosity. On his first visit, he could sense business model of Big Bazaar and he bought 4% equity in Pantaloons. He entered in stock when the stock price was Rs.9. In 2008, the stock crossed Rs.800 and he could earn nearly 90 times returns from this multi-bagger stock.
Make concentrated portfolio
Mankekar believes in a concentrated portfolio. He holds only small number of different stocks. It is worth to follow this strategy as it becomes very easy to focus on small stock portfolio of concentrated stock. Concentrated portfolio means high-risk high-reward game. Selection of stocks is very important when you make a concentrated portfolio.
Invest for Long Term
Prof. Mankekar is a long-term investor and he supports long-term investment. He invested in Talwalkar before the company was listed. He is associated with Talwalkar since 2006. He is still holding stock of Talwalkar. This clearly says that if you find good stock for the investment you should make an investment and stay invested in stock for long term.
Know when to exit from stock
Another investment lesson one should learn from Mankekar is knowing when to exit from stock. Mankekar purchased Wockhardt stock with an average price of Rs.240 in 2011. The stock turned out to be multi-bagger in 2013 with a price of Rs.2166 per share. His investment has grown by nearly 9 times in just two years. However, he has not sold this stock. He could not sense FDA risk factor associated with this stock. The stock of Wockhardt declined badly due to FDA warning. He ended up selling stock with a little gain of Rs.100 per share. One should assess the risk associated with stock and rebalance the portfolio as per requirement.
Prof. Shivanand Mankekar Stock Portfolio Holdings
|Stock||% Holding||Nos of shares (Lakhs)||Value (Rs. Cr)|
|Laxmi Vilas Bank||1.97%||37||54.39|
|Kotak Mahindra Bank||0.05%||8.58||86.31|