Notes from India’s answer to Berkshire Hathaway
RBI limit on overseas investments that has been in place since February 2022, the share of US stocks has shrunk to 16% in the portfolio. The alpha that is coming now is from pure skill.
Most of the core team has been with PPFAS for a long time—Thakkar for over 20 years, and fund managers Raunak Onkar and Raj Mehta for over 10 years. Another source of comfort is the fund’s willingness to take cash calls (currently 14% of the corpus).
If things get bubbly, they don’t hesitate to get out. All that said, I take Thakkar’s message to heart.
I certainly don’t expect 20%+ returns next year or the year after that. If it happens, well, I will take it as a bonus.
What I do expect from this stellar fund management team is some alpha over long periods of time, an honesty in their communication with unit holders, and a continuation of their highly principled approach to asset management (they don’t go on new fund offer sprees for the heck of it). Now, some practical announcements made at the meeting:
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