Hello Forum Members,
I am attaching a screenshot of my portfolio.
I did extensive research on all the stocks before buying them and every one of the companies I bought had a moat going for them or were very good in their Balance Sheet.
Still, I am at a loss.
I am clueless as to why this is happening.
I do not want any Buy/Sell/Hold recommendations. I am just looking for reasons why such good stocks are giving such bad returns.
Ex: Binny is a very undervalued realestate stock. They offer land at very cheap rates. Still it is done.
Vikas Ecotech has a very big moat going for them. However, the stock price is declining everyday.
Vakrangee has just announced its tie up with Railway still it is declining.
Voltas has debt free books and lots of cash. Still the stock is not on anyone’s radar.
I am clueless on what is happening in the market right now.
Please guide me sir.
How long have these holdings been in your portfolio? Best.
For me it looks like a very recent, 2 month picks. I am invested in two of these names recently, and both are in green for, though I am overall in deep red and I am not overly concerned about that at this month.I believe + or -10% or even 20% should consider normal for short term is my learning.
Out of these, do hold Binny (small stack) and Vikas Eco - Results are still due. Binny is on temporary down trend and I believe it will revert (see its thread) and so I believe for Vikas Eco as well. Now I am also a newbie, so take my opinion as another newbie view.
Most of the time we expect the price should come down for us to pickup, then Mr. Market should know that I picked it up and it should go up fast, higher and higher. Unfortunately, that does not happen ;). So as I build conviction, if the price goes down, I consider it as an opportunity and add some more (which can be risky if my thesis is wrong. But that’s me.
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- Then, why are you worried?
- Are you sure you have done your due diligence?
- Do you understand the moving parts of the businesses in your portfolio?
- Are you convinced about their business quality (What kind of growth runway do they have ahead of them? How did you conclude that these businesses have moats?), management quality (What is their track record when it comes to capital allocation, capex execution, etc? How have they treated the minority shareholders in the past?), and valuation (Let’s not forget that a great business isn’t necessarily a great investment.)?
Even psychologically speaking, there isn’t even a single red gash in your portfolio. My advice would be to not watch the price action every day (We have all been guilty of that. I still am. 
), and more importantly, not worry about how others’ portfolios are going up.
Anyway, if you still want an opinion of others on your portfolio, you need to write a couple of lines on each of your picks, explaining your rationale for investing in them.
Use this as a template. Saurabh Portfolio for 20% Expected Return
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@aayushamj I can identify with you. As I started the investment my portfolio looked like yours and then the VP was in its early days, members were few and all veterans used to help beginners like us as the SEBI’s new guidelines were not in place. I am not an expert but from what I learned in this forum I can share. I may not be able to give you individual stock recommendations, but some broad guidelines.
- Don’t fall in love with any stocks.
- There are opportunities available always. Don’t think that you have lost an opportunity because you were late in responding. All that is needed is to go through every thread of VP and dish out what satisfies your criteria.
- While buying margin of safety is of utmost importance. It depends on your horizon of investment also. So it is different for everybody.
- Another important factor is capital allocation. Even if you have the right stocks, if your allocation is low your pf may not have any impact because of that stock outperforming. In your pf you have inadvertently mentioned your capital on each stock as well (VP guidelines wants us to mention capital as % as this is a public forum) With that kind of allocation at present,your stocks are not going to move the pf much. Go through the capital allocation thread and do accordingly. Market performance is based on what is going to happen not what has happened. I just picked up two bar diagrams from an algorithm based forecast on Indian stocks which I have subscribed(stockflare.com). It is not always accurate, but some guidelines to start with. This is sectoral forecast so we have to study the stock individually also(I am not an expert in that).
- You don’t have to be an expert and understand all the techno-funda to be successful. I must say that I have benefited by coat-tailing. The least that we can do is to follow the leaders if we don’t have much time as in my case. But we must have some level of understanding of each stock and take full responsibility for what ever happens.
Out of your pf, I only have manappuram. It is subdued because of the gold price being down. I am happy with the management, so I am keeping it.
Discl: Please take all my comments with a pinch of salt as I am not a SEBI registered analyst. Please do due diligence before taking investment decisions.
with regards
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Excellent and workable advice by @sajijohn
A large part of my portfolio consists of Binny Ltd. Binny Ltd has done very well to monetize its land bank through its construction partner SPR and i expect it to do well in the future as well.
Best
Bheeshma
Just chill. I think your portfolio has just recently been created. Give it some time.
If you have done your work well, why worry? Just sit back and relax and continue SIP
2 Likes
Thanks everyone for valuable feedback.
Yes, my portfolio has been created 2 months back.
I am new to investing in equities directly as earlier I have made a lot of money with MFs.
I stopped investing in MFs as I was not getting dividend and had to pay extra apart from my purchase.
In equities, I get dividend and value also multiplies.
But I did not have to worry about a mutual fund as a lot of other people were invested along with me and the fund managers compensations are generally linked to their performance.
That is why I got scared.
I will keep your valuable comment and wait and watch and not be scared of GST.
As retail and coal and transport and exports are said to benefit post GST, I was though thinking of liquidating all stocks and putting everything in GMDC or HUL as I feel these stocks could show a lot of uncertain increase till July 1st
Guys this is my consolidated portfolio.
I am thinking o liquidating it and investing all money in NESCO.
Needing guidance.
I am scared of losing more money is the shares I am invested in.
I have done a through backround on NESCO but am not confident on any other company out there, be it GMDC, HUL, Force or any other firm.
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Never put all your eggs in one basket.
Investing all the money in one stock is a bad idea.
Here’s a quote from Warren Buffett / Ben Graham:
You can get in a whole lot more trouble in investing with a sound premise than with a false premise.
Your initial investment in NESCO could be based on a sound premise. And now you want to put all your money in one stock where there’s some price action…where’s your risk management?
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Why dont you give it some time?
I can understand the restlessness you are having. I am a newbie here, and learning everyday, even some part of my small portfolio consisting small caps is red.
When you have invested in some stocks, I am sure, you have researched on it, spent time studying its business,and did some basic calculation.
Stick to that, give it some time.
I do agree with the comment above that do not put all your eggs in one basket, this is a classic advice for every one.
I am tracking tata elxsi, balrampur chini, advanced enzymes.
I feel they are a good pick, sugar stock at least for this year, as they are cyclic in nature.
I am not tracking the rest. Atleast give these some time.
Rest I will not comment, as I have not studied about those.
Lastly I am no expert and I am not a registered advisor.
You did not mention the rationale/thought process behind such a construction. If you were thinking of investing Graham-style, looking for stocks that are cheap on multiple measures, you would need to hold many stocks (just like you are holding 17 stocks in the first image). In this scenario, on average some stocks in your portfolio will do poorly and some will do well, and you would have to keep weeding out poor performers from the portfolio so that over a long period of time, your portfolio performs well.
If you were focused on buying high quality ‘moat’ businesses, you may want to check if the underlying fundamentals for these have changed or not. Getting favorable returns over the long run requires the ability to stomach short term quotational losses.
Hi,
I strongly believe one should invest in the market only if they invest for long term, 2 years minimum to say the least. Since you have just started investing, I will suggest you keep 30-35% in cash to deploy during correction since most of the stocks are trading at rich premium and hence less margin of safety is there.
Invest in 15-20 stock at the minimum, with no single stock exceeding 10%. (The reason i say this is because since you are a new entrant in the market, capital safety should be more important rather than appreciation.)
Dont get bothered by daily/weekly price movements if you have studied the company well. Invest with patience and if it still bothers you that I will strongly suggest that you re-think about self investing. Trust me you will lose your peace of mind if you ever witness any of the market crash the way your reaction is 