Coffee Can Investing
Coffee Can Portfolio
• Minimum market capitalization of 100 crore
• Annual sales growth of 10% for last 10 years
• Annual ROCE(EBIT/capital employed) of 15% for last 10 years
• Mean CAGR – 24 -25%
Expenses matter
• Regular vs Direct Funds- high brokerages costs
• Active vs Passive funds- poor alpha
• Expenses compound
Small vs Large midcaps
• Small Caps – Higher returns and higher risk
• Large Caps – Lesser returns but more reliable
Real estate
• Pitfalls of real estate investment
• Illiquid assets
• Requires large investment
• Higher expenses
• Non standard assets
• Residential vs commercial real estate
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