How did you start out as an investor and what were your goals?
My journey started in 2016 when I joined Millennium Mams’ which is a non-profit organisation promoting financial literacy under Mr Bishnu Dhanuka, who is our mentor and he actually believes in the tenets of the legendary investor Mr Warren Buffett.
I joined this organisation and till my investment journey started, I had taken a hiatus from work and I was at a crossroads.It was the best decision to join Millennium Mams’ and start my investment journey. Of course, investment journey for a rookie like me required a lot of preparation. I spent almost one year understanding financial statements, reading annual reports and interpreting these statements. Almost after a year, I started investing in the market.
There is a belief in the market that only the institutional investors tend to make big wealth in the stock markets and the retail investors and especially the women investors do not have the access to that kind of information. What is your take on that?
There is no substitute for reading and information in this day and age is a great leveller. There is a lot of information in the public domain which can be utilised to create a portfolio that can generate wealth and we are proof of that. There are many women in the organisation who have achieved financial independence, have healthy portfolios and that is all being done because they have worked on it.
We as an institutional go through annual reports, attend earnings calls, meet with managements and there is a lot of work which goes beyond that to simplify the investment journey. We really believe that when opportunity means preparedness, miracles happen and I am also a proof that miracles can happen.
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You have come out with flying colours. Any stock that you have looked at recently which looks good to you?
I always believe positivity starts with something that I am looking at as the big bet in my portfolio. I just want to reel back a little bit and explain why I am looking at this stock.
I believe that India is marching very quickly towards becoming a $5-trillion economy and what really is going to play out is the advantage of demographics, democracy and demand. Now how can you fail if you go with consumption related stocks? At Millennium Mams, after a lot of deliberations and discussion with our mentor, we have combined consumption into one broad bucket. Whatever you spend on, can be termed as consumption like travel, hospitality, FMCG, consumer durables, healthcare and even the financial sector like NBFCs.
I include NBFCs simply because NBFCs will fuel the consumption desires of the growing middle class. I am going to back it up with some statistics for you. The number of middle class households is expected to be 80% in 2030 against 50% in 2022. They will account for 75% of consumer spending. So, who is going to fund all of this? It is all going to come from NBFCs.
We agree that there is a lot of money to be made and so on the basis of that, I invested in the new kid on the block which is Poonawalla Finance Ltd.
We have studied the stock and it is not a recommendation, this is just a personal conviction that I have. They have great parentage and low cost of borrowing. They are investing in technology which I believe will be the differentiator because it helps in risk management, which is very important for NBFCs. It reduces turnaround time and consumer acquisition which again will help in the opex and they are actually building a very robust management team.