Hari’s portfolio. Needs a helping hand


(hari_) #1

image|375x500Hi folks, I got introduced to the markets in July 2017 after my graduation. I wanted to make big money in equity, but feel kinda lost atm. I have made some (rather huge) mistakes over the last 1 year. I request seniors and fellow VP members to comment about pf return prospects for next 3-5 year period. Will surely invest in nazara technologies when it gets listed. ! Am accumulating tata motors Dvr at the moment. Will post rationale in next post behind allocation


(hari_) #2


(hari_) #3


(hari_) #4


(hari_) #5

Pc jewellers was a low debt to equity firm growing at >15%las year. Thangamyil jewellery and Titan we’re also doing great at that phase.

BEL due to the huge order book. Earnings visibility was there and defence expo 2018 I thought was a big trigger. Maybe I shud have given the shares for buyback.


(Sandokan) #6

@hari1

I am a newbie here, but I do have several years of investing experience. It seems to me, and I am sure that several members will say the same, that your purchases have been too varied (diversified) and I do hope that you have put in enough effort while researching your buys. Secondly, a time period of one year is too less for any visible increase in the value of any portfolio, especially such broad-based ones. I will suggest that you study each and every stock and write down the detailed rationale for your purchase, the price at which you bought and why, the value you expect it to give you and why, and the time you are prepared to hold onto that stock. There is sufficient learning guidelines here, and I suggest you start with the forum entitled “Investing Basics”, and then go on to “Investment Learning”, “Investing Strategies”. There are several other forums where a lot of guidance is available.

It may also be useful for you to go through the website of Dr. Vijay Mittal, wherein he has given a beautiful explanation of how many stocks one should have in one’s portfolio. He has opined that if one has more than 30 stocks, there will not be any difference to one’s portfolio because the gains of one will be nullified by the loss of several others. He has also elaborated that if you are able to find one stock in one year, then you are going to make a lot of money. One simple rule, which I have learned, is not to lose focus. When I am trying to deal with a multitude of stocks, I will surely lose some vital sign from one of several stocks which will cause a big financial loss. I try to keep the number of stocks in my portfolio as low as possible. Instead of buying so many stocks, it would have been better to invest in a mutual fund!

I could go on, but I am sure that there are several more erudite members here who can give much more reasoned guidance. I have certainly received that here.

All the best!

Regards

Sandeep


(1.5cr) #7

I think you should concentrate the portfolio. Remember it takes 3-4 big wins to make wealth. Allocation becomes key. With such a diverse portfolio you should go the MF route.


(hari_) #9

Eid parry holds a lots of shares of coromandel international, is from the reputed Murugappa group. They have a diversified product range and are in cyclical downturn of sugar. If I wait 1/2 years I can see good returns I believe.
TML DVR is on a turnaround so it make sure more sense to accumulate at these levels. Domestic business is showing good momentum.
Am holding websol and kalpataru power because I expect govt to find a solution for stressed power assets under nclt. So people will get to know how valuable these companies can be.
Ashapura minechem because it is India’s largest private miner. They mine bentonite. It is used in green sand moulding. I work in a foundry so I was happy to buy it. Moreover porinju endorsed it


(hari_) #10

Kajaria I bought on affordable housing theme. And high roce values
I am looking to dispose Philips carbon, highly leveraged play . I bought at froth levels, the RP sanjiv goenka group is getting stronger each day, whenever I see ceat or zensar technologies make new highs I think it is bcoz of sanjiv goenka


(hari_) #11

I will not be selling aia engg. Gail.
LMW I believe this company can double at least in 1 year time. They make top notch CNCs and Textile machinery. And are very powerful in Coimbatore. They have a casting unit for backward integration. So profitability is taken care of.


(bharat19) #12

Are you a SEBI Registered adviser ? I don’t think such kind of messages are useful where you ask someone to sell everything in Losses and Buy only 2 specific shares.
I don’t think there is anything wrong in business like Kalpatru or BPCL or Philip Carbon. Also companies like IGL , GAIL , AIA have anything wrong. In fact , come to Delhi and you will get to know how good the IGL business is despite being run by government.
Also there is no guarantee for graphite electrodes. What if they declined after purchasing.

@hari1 Try to make the list of best 20 stocks from above list or from other stocks where you have high conviction and try to allocate good capital in first 10 stocks. I don’t think one need this much diversified portfolio. You are running a self Mutual fund scheme with around 40-45 stocks where i believe the returns may disappoint you with so many stocks. Keep at max stocks at 20.

Disc: I hold Indraprastha Gas and TVS Srichakra from above list of stocks


(hari_) #13

This is nothing. I hold 105 stocks in my pf. Just that I am waiting for right entry levels. Stocks like au small fin. Bank, IEX, Vera and ttk prestige are some of them


(hari_) #14

Their allocations are miniscule tho


(1.5cr) #15

I think you should chose your 10-12 best ideas allocate 75-80% of portfolio there. Use the other 20-25% to make a satellite portfolio with all your ideas. And if you think that the idea is worthwhile moving to your core, then you can reconsider one of your other scrips for an exit. This way you make sure that the ideas entering your core portfolio are better than what is already there, atleast as per your research and conviction. Holding so many stocks is a waste imo. If you are the type of person who likes such large portfolio, then you maybe suited to building a PF of thematic MFs. Identifying a trend, for eg: say you think infra and power will be a good theme to bet on, go ahead and find the best MF that fits your thematic idea. Build a portfolio of such thematic MFs get your exits right and you will end up doing far better imo. In addition you wont have to break your head in trying to track and analyse so many companies…


(Paulbiplab) #16

if I ever wanted to build a portfolio with more than 100 stocks, I would invest the same amount in all and then I would retire playing a game of dice. Would throw the dice ten times every day, the number of times the dice would show >3 would be the probability of your investment showing a gain-


(hari_) #17

That’s a harsh statement… I did these things with the best of intentions tho


(Paulbiplab) #18

You got it all wrong.
All I wanted to say that I do not have the capability forced by time and energy to contemplate conscientious attention to the list.
I would leave it to pure chance or probability.

Hope this clarifies.


(Sandokan) #19

I really think you need to seriously relook at your approach to stock investing. Quantity does not necessarily mean quality. If you investing in a stock by a justification of just one line, then you might as well buy ANY stock. And there is never a right entry level. I would sincerely suggest that you should write down detailed reasons for each of the shares you have bought, which should be supported by adequate financials. Unless you can do so, there is not much point in just buying a share, and waiting for it to rise in value, for it may not have any intrinsic value in the first place.

The very fact that you have sought views from members here, indicates to me a desire to make improvements in your holdings. Now it is up to you to make that happen. After all, it is your money!!!

Best Wishes

Sandeep


(1.5cr) #20

There is nothing wrong in holding 100 stocks or more. Everyone has their own styles. Maybe he manages a large amount of money and does not want to go concentrated. In my personal view it is too much and a portfolio of 20-25 is diverse enough.


(Dragon) #21

Instead of holding more than 100 stocks and monitor them why not buy index funds and keep invested for long terms? Less headache and also almost same returns will be obtained…