This is how I am targeting my portfolio. Would like to have comments from seniors please.
"For the ones with very large portfolios like 15x -20x times annual salaries it is essential to have solid anchor stocks. Stocks like HDFC twins/Titan/Page/ even Hawkins come to my mind.
Apart from the earnings/profits and the usual multiples it is the kind of scarcity premium they command for a potential acquirer that will never allow these to trade cheaply. Hence downside is fairly protected at all times.
For the ones with much smaller PF size 2x-5x times annual salaries, one can strategize broader themes and play around. Here one can move away from the safer names to be more aggressive, provided the they do not lose sleep over volatility.
The idea is to allow these themes to play out and don't look at quarterly figures.
The urban housing theme. Financiers for growth beyond large cities (Gruh/Repco) and pseudo infra names (Astral/Cera/Kajaria). This theme should be played for next 8-10 years at least.
Another theme would be pseudo play on consumption like Automobiles on ancillary stocks (Amara Raja/Mayur Uni). Volatility is bound to be more here. The idea is to not sell out during down cycles but raise stakes, so once the downturn subsides gains could be potentially higher. So these would be real long term bets.
Along with this we need to participate in short term opportunities (Symphony/Kaveri etc) depending on short - medium outlook. Supported by strong business and superior balance sheets, the chances of downside debacles are lower.
Allocate Portfolio %age between these buckets "Stable Compounders - Stalwarts", "Thematic Long Term Plays", "Short Term plays". Idea is to have bucket level allocations intact despite of stock shifts.