Please advise me on my portfolio

Q&A: Questions & Answers Portfolio Q&A
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Can anyone advise me on my stock picks. I am planning to hold the below for the next 5 years unless any of them goes below 8% of purchase price. Given below are the stocks with their avg. purchase price:

avanti feeds 507

glenmark 858

stovec ind 2019

tcs 2250

torrent pharma 1429

zensar tech 970

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Except for Avanti Feeds which I do not track, rest are good fundamental picks.

Given the nature of Indian promoters and the uncertainty of the behavior of Indian business laws and government, I would recommend to divide the portfolio in at least 15-20 stocks.

Pharma - Aurobindo Pharma, Granules, Alembic Pharma are interesting picks.

IT - I am more positive on HCL, Zensar Tech, Infosys and Mindtree compared to TCS in terms of return over long term.

Would also recommend to have some stocks facing the domestic consumption story -

Auto/Auto ancillary plays - JK Tyre, Balkrishna Industries, Atul Auto, Tata Motors, Baja Auto

Infra plays - Adani Ports, Grasim Industries, HCC, Jkumar Infra, L&T, MBL Infra (a bit risky) and Reliance Infra

Banks - RBL, DCB, Dewan Housing, HDFC Bank, SBI, Edelweiss Financial, Reliance Cap, PFC, REC

I hold all the above mentioned stocks. Do study further if you choose to invest in any of the above. For me, capital protection is just as important as capital appreciation, hence I do not allocate more than 5% of my portfolio in a single stock.

Happy Investing.

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Hi Thanks for your feedback. Actually I am not an expert in stock investing and have very little capital to invest, around 2 to 3 lacs hence diversifying a lot doesn’t make sense. So could u suggest just 4 to 5 stocks which I could remain invested in? Also what is a good price to buy them at?

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Jstocks

  1. There seems to be no conviction in your stock picking process. I am referring to your statement “I am planning to hold the below for the next 5 years unless any of them goes below 8% of purchase price”. I suggest you first spell out the investment logic behind each of the stocks in your portfolio and then seek support. Use this Forum “not to get fish but to learn fishing”.
  2. Asking people to recommend stocks in such a forum is disastrous for financial health. People could change their views about a particular investment and sell it without you knowing about it.
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Also Selling with -8% stop loss is confusing. Suggest to have -30% as target for exit.

Till then average down with every 10% dip.

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Hi mvmakadia, thanks for your advice. you are absolutely right when you said that I don’t have any conviction in my stock investing process. Not that I am a lazy person and don’t wish to do my homework but honestly I have been reading financial news from websites and newspapers since a long time but haven’t been able to make head or tail of the information. I understand what the various stock ratios are, the balance sheet and profit and loss statements but I have still not mastered the art of stock selection. I go through websites like moneycontrol, valuepickr, etc, read recommendations from geojit, crisil and check the ratios on screener.in. Any stock which appeals to me I buy them in small percentages.

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@jstocks IMHO you must first start with books. I started with Warren buffet way , recommended by @ayushmit Sir. Also I will suggest you read the book written by Guy Spier. You will notice that the successful investors avoid reading business newspapers or TV channels . Also the analyst report or a broking house recommendation should only be the last reference material, after you have finished your own stock analysis.

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