IN a paper in 1984, Robert Kirby of Kirby capital had narrated an incident involving his client's husband who had purchased stocks recommended by Kirby at $5000/- each. He did not ever sell anything. Metaphorically he stuffed the certificates in a coffee can. ( In the 1900s much before bank branches spread, Americans used to save their valuables and cash in a coffee can).
A decade later these tuned out to have created enormous wealth. One holdings was Xerox which ballooned to over $800,000 in value. In describing this outcome of "buy and forget" Kirby coined the term coffee can portfolio.
Let's look ate some of the stocks in India - which fit the coffee can approach.
Simple products, preferably essential and companies which dominate the market of these products/services and hence enjoy pricing power.
5 year stock price charts of some of these companies will tell u a lot about the "buy and forget" coffee can strategy.
A decade later these tuned out to have created enormous wealth. One holdings was Xerox which ballooned to over $800,000 in value. In describing this outcome of "buy and forget" Kirby coined the term coffee can portfolio.
Let's look ate some of the stocks in India - which fit the coffee can approach.
Simple products, preferably essential and companies which dominate the market of these products/services and hence enjoy pricing power.
5 year stock price charts of some of these companies will tell u a lot about the "buy and forget" coffee can strategy.
Asian Paints is 2.7 times in last 5 years
NESTLE INDIA is 2.17 times in last 5 years
RELIANCE Industries in 2.56 times in last 5 years
HDFC Bank is more than 2.3 times in the last 5 years
TCS is 2 times in the last 5 years
(Disclaimer : For the propose of information only and not to solicit any business or to recommend or advise. I have investments in each of these stocks)
