Coffee Can Portfolio

• The Coffee Can Portfolio investment approach helps you rise above the market volatility and noise by investing for a long-term horizon of at least 10 years. It also helps save on transaction costs as there is no rebalancing done once the stocks are bought.
• Companies in this smallcase have shown constant revenue growth over the long-term, which indicates that the company is able to expand its business operations to continue growing
• Revenue growth creates shareholder value, only if return on capital employed (ROCE) remains high. Hence, it is a very important metric in assessing a firm’s performance. This smallcase selects companies whose revenue has grown by at least 10% every year and ROCE was at least 15% for each of the last 10 years.
• To make the most of this smallcase, invest once and forget for the next 10 years

The idea of a Coffee Can Portfolio was introduced by Robert Kirby. The concept was derived from the early nineteenth century, when people put their valuable possessions, like money and jewellery, in a coffee can and kept it under the mattress for safe keeping.