Coffee Can Investing: The Secret to Long-Term Wealth Creation!
☕️ Coffee Can Investing: The Secret to Long-Term Wealth Creation!
📚 Concept taken from the bestseller "Coffee Can Investing" by Saurabh Mukherjea
🌟 Introduction
Imagine an investment strategy where you buy top-quality stocks, forget about them, and after a decade, you find yourself sitting on a huge pile of wealth! 🏦 Sounds simple, right? That’s the beauty of Coffee Can Investing ☕️—a concept introduced by Robert Kirby and beautifully adapted for Indian investors by Saurabh Mukherjea in his book Coffee Can Investing: The Low Risk Road to Stupendous Wealth. 📖
This strategy is for investors who believe in simplicity, long-term focus, and low-risk wealth creation. Let's explore how you can implement it in 2025!
✅ What is Coffee Can Investing?
Coffee Can Investing ☕️ is about buying high-quality companies that have delivered consistent growth and excellent returns over long periods—and then doing nothing for the next 10 years! 🗓️
📚 Origin of the Concept:
- Initially introduced by Robert Kirby (1984), inspired by clients who held stocks in a metaphorical coffee can for safekeeping.
- Popularized in India by Saurabh Mukherjea, who refined the strategy for Indian investors through his bestselling book.
🔑 Core Principles of Coffee Can Investing
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🎯 Invest in High-Quality Companies
- Proven businesses with consistent performance.
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⏳ Long-Term Horizon
- Hold for at least 10 years. Ignore the noise! 🔇
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💼 Minimal Portfolio Churn
- No frequent buying or selling. Sit tight and relax! 🧘
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📈 Power of Compounding
- Let time do its magic! 🪄
📋 Criteria for Selecting Coffee Can Stocks (As per Saurabh Mukherjea)
| ✅ Criteria | 📌 Requirement |
| 📊 Revenue Growth | Minimum 10% CAGR over the past 10 years |
| 💰 ROCE (Return on Capital) | Minimum 15% consistently for 10 years |
| 🏦 Debt Levels | Low or zero debt |
| 🤝 Corporate Governance | Clean management, ethical practices |
| 🏆 Market Leadership | Dominates its sector, has a strong moat |
🏢 Updated Coffee Can Portfolio (As of 13th March 2025)
These are examples of Indian companies that fit the Coffee Can Investing philosophy today. They’ve shown consistent growth, high ROCE, and stellar management quality.
| 🏢 Company | 🏭 Sector | 📈 Market Cap (₹ Cr) | 📊 10Y Revenue CAGR | 💡 ROCE Avg |
| 🖌️ Asian Paints | Paints & Coatings | ₹ 3,15,000 | 12% | 35% |
| 🦉 Pidilite Industries | Adhesives/Chemicals | ₹ 1,20,000 | 11% | 25% |
| 🏦 HDFC Bank | Banking | ₹ 11,00,000 | 15% | 18% |
| 🏛️ Kotak Mahindra Bank | Banking | ₹ 5,00,000 | 13% | 17% |
| 🍜 Nestlé India | FMCG | ₹ 2,25,000 | 10% | 30% |
| 👕 Page Industries | Apparel | ₹ 45,000 | 15% | 40% |
| 💍 Titan Company | Jewelry/Retail | ₹ 4,50,000 | 20% | 30% |
| 💻 TCS | IT Services | ₹ 13,50,000 | 14% | 40% |
| 🏡 Bajaj Finance | NBFC | ₹ 4,80,000 | 28% | 20% |
| 🛒 Avenue Supermarts | Retail (DMart) | ₹ 3,20,000 | 23% | 22% |
| 💊 Divi’s Labs | Pharmaceuticals | ₹ 1,30,000 | 12% | 26% |
| 🛡️ SBI Life Insurance | Insurance | ₹ 1,60,000 | 18% | 18% |
| 👟 Relaxo Footwear | Footwear | ₹ 27,000 | 10% | 22% |
| ⚗️ Vinati Organics | Specialty Chemicals | ₹ 20,000 | 13% | 25% |
🔎 Recent Performance Snapshots (FY2025 Q3)
1️⃣ Asian Paints
🟢 Revenue: ₹8,250 Cr (up 10% YoY)
🟢 Net Profit: ₹1,350 Cr (up 12% YoY)
2️⃣ HDFC Bank
🟢 Revenue: ₹28,000 Cr (up 15% YoY)
🟢 Net Profit: ₹8,000 Cr (up 18% YoY)
3️⃣ TCS
🟢 Revenue: ₹45,000 Cr (up 12% YoY)
🟢 Net Profit: ₹10,000 Cr (up 11% YoY)
4️⃣ Bajaj Finance
🟢 Revenue: ₹15,000 Cr (up 20% YoY)
🟢 Net Profit: ₹5,000 Cr (up 18% YoY)
🌱 Hypothetical Returns: 10 Years of Coffee Can Investing (2015-2025)
Investment: ₹1,00,000 each in 5 companies
| 🏢 Stock | 💸 2015 Investment | Price Per Share on 13-03-2015 | Price Pe Share on 13-03-2025 | Absolute Return | CAGR | Value on 13-03-2025 | Number of Times Money Become |
| Asian Paints | ₹ 1,00,000 | ₹ 806 | ₹ 2,231 | 177% | 10.72% | ₹ 1,76,836.23 | 1.77 |
| HDFC Bank | ₹ 1,00,000 | ₹ 520 | ₹ 1,706 | 228% | 12.62% | ₹ 2,28,076.92 | 2.28 |
| Titan Company | ₹ 1,00,000 | ₹ 400 | ₹ 3,009 | 653% | 22.37% | ₹ 6,53,159.80 | 6.53 |
| Bajaj Finance | ₹ 1,00,000 | ₹ 409 | ₹ 8,419 | 1958% | 35.32% | ₹ 19,58,435.21 | 19.58 |
| TCS | ₹ 1,00,000 | ₹ 1,291 | ₹ 3,511 | 172% | 10.52% | ₹ 1,71,925.68 | 1.72 |
| Total | ₹ 5,00,000 | 20.35% | ₹ 31,88,433.84 | 6.38 |
➡️ Total Portfolio Value: ₹31,88,433+
➡️ CAGR: 20.35% per annum
➡️ Zero Stress | Zero Churning | Maximum Wealth 🔥
🚀 Why Coffee Can Investing Works
✅ Simple & Effective
✅ No Need to Time the Market
✅ Tax-Friendly (Less Trading = Less Tax)
✅ Peace of Mind
✅ Ideal for Busy Professionals & Long-Term Investors
🎯 How to Build Your Coffee Can Portfolio
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🔍 Select Companies Based on Saurabh's 10-10-15 Rule
➡️ 10% Revenue Growth
➡️ 10 Years of Consistency
➡️ 15% ROCE -
🛡️ Diversify Across Sectors
➡️ FMCG, Pharma, IT, Banking, Retail, Chemicals -
⏳ Hold for 10+ Years
➡️ Ignore market noise and stay invested -
🔄 Review Every 3-5 Years (Only if Fundamentals Deteriorate)
➡️ Not for panic selling! 🚫
📚 Must-Read Books by Saurabh Mukherjea
📖 Coffee Can Investing: The Low Risk Road to Stupendous Wealth
📖 The Unusual Billionaires
📖 Diamonds in the Dust
📖 The Victory Project
📝 Quick Recap!
| 🚀 Coffee Can Investing Means | ✅ Buy & Hold High-Quality Stocks |
| 🗓️ Minimum Horizon | 10+ Years |
| 📈 Key Criteria | 10% Growth / 15% ROCE / Clean Debt |
| 💼 Focus | Quality + Long-Term + Patience |
| 🏆 Sample Stocks | Asian Paints, HDFC Bank, Titan, TCS, Bajaj Finance |
⚠️ Disclaimer
This blog is for educational purposes only. Please consult your financial advisor before making investment decisions. Past performance is not a guarantee of future returns.
👉 Want a customized Coffee Can Portfolio for your clients?
➡️ Let me know! I can help create PDF reports, presentations, and investment summaries.