The Hindu Business Line : Activist investor

She is one of those rare investors who can proudly claim that her daughter's education in the US was funded by selling a portion of her HLL shares! She is also an example of how you do not have to be a financial wizard to make profits in equity.

A women's rights activist, Sarah Matthew is President of the Feminist Association for Social Action, Chennai. Her inheritance plans are in place. Seven parts of her equity investment (in over 150 companies!) will go to her seven children/grandchildren; the eighth will go to another baby — the Tiruvallur Rural Women Development Project!

What turned into a fortune

Today, Sarah might call herself an "investor and a trader", but in 1980, when her husband, an officer of Siemens India in Mumbai, passed away, she did not know much about the portfolio they jointly owned. But after his demise she was "forced to look at it. In 1980, the portfolio was valued at only Rs 66,000, but it contained 550 shares of HLL. Subsequent to five bonuses, they've turned into a fortune, which helped me educate my daughter in the US," she smiles.

Tracking bonuses

In her first phase, this investor had a penchant for seeking out companies with a good track record on bonus. "Even today, one of the figures I look for is the bonus ratio and, practically, try to own every company that has given a 1:1 bonus.

She has invested in 150 companies because she believes in having a representation from all the areas of India's development."

Sarah has a stake in the who's who of India Inc — Infosys, TCS, HLL, ITC, Colgate, L&T, Dabur, Tata Power... HLL and its erstwhile subsidiaries have given her the best returns. She did not subscribe to the Infosys IPO, and started very small with just two shares; today she owns 350 Infosys shares. Recently, Sarah started dabbling in futures. But she does limited futures trading and only in "stocks I own and know". When asked if F&O (futures and options) is not too dangerous a game, she says, "I think this is not an investing proposition; it is an entirely liquidity-driven proposition influenced mainly by FII money moving in and out. But I started because I wanted to make some money for our social service project."

The day we met, the Sensex had tanked by 500 points. So would she buy now that some of the stocks have corrected?

"Yes, Indian Hotels today came down to Rs 139, and I'm going to buy. With tourism booming, it will do well. Also, the company has made interesting moves in overseas acquisition," she says, adding, "I'm very proud that I have been able to substantially improve my economic position by investing in equity. Also, I feel part of the economic progress that India is making and understand it much better!"

Do you want to share your investment experience? Write to rasheeda@thehindu.co.in

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