@hitesh2710 . Due to limited cash availability , I have started buying company like nesco , Mirza international , hikal , ngl fine chemicals and Avanti feeds in sip mode . I think nesco stock price will not move up suddenly as their It4 building will start contributing revenue from next year . Till that time I can buy in every dip and can accumulate good amount of stock. Same case with Mirza international as they are focusing on domestic market . They are now into sports shoe , focusing on tier 2 city costumers by introducing bond Street brand and also they are agressively selling apparel too . Ngl fine chemical have done a huge capex and the same will reflect in the next quarter result. So please suggest me if it is a good way to accumulate these stock in sip mode . I had a small position in ngl fine and it ran up 30 % quickly . Is it better to buy one stock at a time or multiple stock with small quantities .
Regarding the method of buying, whether buying in a single lot or staggering oneâs purchases, different investors have different styles. It has a lot to do with the investorâs mindset and comfort zone.
In my case if I find that the company I intend to buy is for a period of 2-3 years and expect returns to the tune of 2x to 3x then I dont bother staggering my purchases. But for that to happen I have to have a very clear picture about the company and the variables affecting the business.
If I am not too certain about the moving parts of the business and find that the predictability in the near future is not too certain, then I would love to buy in a staggered manner.
And while buying in a staggered manner one has to be absolutely sure that he would have the guts to buy the same company at 20-30% lower price if the price corrects. Buying on the way up is easier as you tend to develop confidence in your hypothesis but when the stock price corrects the mind starts playing games and the conviction gradually starts to shake.
For companies like frontline stocks like asian paints, hdfc bank, and so on, one can keep buying on regular intervals. But for small caps with wild swings one has to be nimble footed and stick to a style which is suited to oneâs temperament.
Very right sir.In fact, novice like us lose confidence even in strong companies when they lose 10 to 20% and miss opportunity eg pnb housing finance, India bulls housing finance etc
Sir
i have earlier asked your views about first source solution limited post results what are the prospective. secondly do you also track jindal hisar? sir?
Not tracking either fsl or jsl hisar currently.
Fsl was a technofunda pick which i exited some time back
Hiteshji
Pls look at Sequent Scientific. It has cross 60 with signifnicant volumes. The promoter group has got it act together finally with strides and solara so i expect sequent to do much better from these levels.
Also, kiri is a good bet now. On 31 August, hopefuly the appeal in singapore cout will be dismissed paving the way for the sale of their stake.
These are my top holdings and thought i would share.
Hi @hitesh2710 Sir,
Do you still hold SKM egg products or was it your short term pick ? What are your current views on SKM egg Products ?
@hitesh2710 your views on hexaware whether buying opportunity during current weakness and also on SpiceJet at current price and with jet likely to lose market share and eventually fold up .
Dear Hitesh ji,
What are your views regarding Magma Fincorp post its quarterly results.
Thanks
Magma results seem to be decent and on the lines of what they had indicated in q4 fy 18 concall.
Asset quality improvement is as expected⌠Its heartening to see the figure for direct sales going up as promised.
Overall much along expected lines.
Sir,
1)What does your experience says on allocation of stocks in portfolio?It should be <5 stocks with more concentration or more no of stocks with lesser concentration?
2)How do you allocate for yourself?
I am in market since 1 year and what I learnt is that if you have many stocks with less allocation your risk will reduce but your returns will also reduce.
Like,if I have only VIP Ind invested 1L 1 year ago,it wid have been apprx 3.5L at present.But,if I divide this 1L into 10 stocks with 10% allocation in each including VIP,it wud have given 10-15-20-25% return with VIP becoming 35000.But definitely there would have been risk with only VIP that if it would have went down I would have lost of all huge 1L.This risk would have reduced with dividing 1L into many.
Even if one holds 15-20 shares of quality companies , he will enjoy magic of compounding provided he remain invested as long as business and Balance Sheet is strong. Definitely returns will vary with a concentrated portfolio but so is the risk. I believe it depends only on Individuals capacity and risk taking ability. I too have a little concentrated portfolio of around 10 stocks. I invest only that money which even if went Zero , i wonât mind. I donât even think that it is my money after investing. Reason being i have regular other sources of Income like Salary , Business and Rental. So , If i earn 1 Lakh a Month and I save around 60 Thousand , I will invest 35000 every month in Market thinking that My savings was only 25000 which i keep as Emergency Fund. What i want to convey is that the allocation and Concentration of Portfolio depends on a Personâs risk taking ability.
About portfolio concentration vs diversification, the debate is endless and futile. It all depends on the type of investor one is. Some guys are ok holding 40-50 stocks while others limit themselves to 12-15 or some even less.
About myself I usually hold upto 12-15 stocks. Max allocation I cap at 15% of total portfolio and minimum at 5%. This strategy has worked very well for me till date and I cant see myself holding more than 12-15 stocks at a time.
I think portfolio allocation is equally important as stock selection in the overall scheme of things while investing.
Hi,
The maximum level of allocation is followed for investment or the current level of portfolio. Would you comment on the better level of management of maximum allocation in day to day changes and increased allocation beyond our set target?
I use the filter of 15% maximum at the time of initial buying. After that if the stock price runs up I allow it to run up and keep riding till I feel there is extreme overvaluation or froth. If the latter happens I used to sell the whole holding but of late I am trying the idea of trimming the holding to comfortable levels.
I think if the company with max allocation keeps performing quite well in terms of financial performance its ok to keep riding without bothering about how high the allocation has gone post the run up.
The confusion happens when we feel that after the run up we feel that there is not much juice left even after factoring in next 2-3 years performance. But after some mistakes made in stocks like page, gruh etc I have realised that after some trimming it might be prudent to allow the position to remain intact.
Multibaggers make a difference in portfolio performance only if full position is allowed to continue throughout the journey
How do you see PEL? Some breakout today after long consolidation?
What do you think PEL from a techni funda perspective for long term?
Thanks.
Dear Mr. Hitesh,
Whatâs your view on ICICI Prudential and Rallis India from an investment perspective of about 4-5 years. I believe both could be multi-baggers in the years to come. Thanks in advance !!
I track and like rallis india. Icici pru can also be interesting but i dont have a lot of knowledge of insurance companies so dont know where to slot it.
Rallis has promised a lot since past few quarters but hasnât delivered fully but i think around 200 a lot of these disappointments are priced in.
I dont have access to my charts as I am on vacation but I think after a brief correction PEL has made a breakout again so it looks headed higher.