Apologies for the lack of recent updates; there hasn't been any notable change in my portfolio, and I haven't come across any new and interesting topics to write about.
However, based on the latest quarterly results, I decided to make some adjustments to my portfolio. I ran out of patience with SBI Cards and Restaurant Brand Asia (RBA), prompting me to sell off both positions. One of the advantages of investing in businesses at a good price is that even if they underperform, there's still an opportunity to exit with a profit.
While both SBI Cards and RBA are excellent companies with potential for long-term success, my current concern with SBI Cards lies in its high valuation and lower-than-expected revenue growth (17-20%). I'm hesitant to stay invested in any business involved in unsecured lending in today's market. In the lending sector, it's prudent to avoid areas where there's a crowd. In the previous cycle (2015-2017), it was housing finance (PEL, DHFL, PNB housing etc), and before that, it was infrastructure (PSBs/ICICI). Today, I believe the risk lies in unsecured lending.
As for RBA, I've never been particularly fond of it (as you can see from my previous portfolio update). It plays second fiddle to McDonald's, and my experiences with both burger chains have consistently favored McDonald's. Additionally, local brands are holding their ground in the competition. Although I typically adhere to a strategy of owning market leaders, this was an exception, I felt compelled to sell RBA when the market presented a new opportunity.