Hi, this is Varadharajan from Chennai. I am not from a finance or accounting background but work in Operations in BFSI vertical.
I am used to investing on hear say or by reading research recommendations or blogs, without completely understanding the business or validating the rationale or valuation.
I consider joining VP Forum as the best thing to have happened to me in 2016 and this happened very recently. I hope it’s never too late, and I am a beginner and learning the ABCD of investing now. I have recently got my first Reader Badge. I can say with true conviction that this forum has been a complete eye opener to me, and I say this after just reading the threads on Investing Basics, and parts of Art of Valuation & Capital Allocation framework links.
This has created an interest in me to learn about equity investing and my investment journey is just about to begin. I intend to read the suggested books of Peter Lynch, PAT Dorsey & also Intelligent Investor by Graham. Apart from reading the material, I also wish to try out the DIY topics suggested in PAT Dorsey book starting 2017.
I would like to thank Donald, Hitesh, The Confused Consultant and the entire VP community for your comments and guidance, sharing your practical experience and learnings/mistakes, hypothesis behind your investments, making VP a great learning platform and for the thought provoking questions in the various threads.
When I joined VP group few weeks back, and I had shared my PF as I felt that I had too diversified a portfolio and was unable to keep track of the companies. I had received very good inputs and recommendations on the approach and I am thankful to the community for the same. I have started pruning this list and shall continue this as an ongoing exercise as I keep learning about investing.
I was looking on my portfolio and reflecting upon how I wanted to invest in future, I was faced with the following thought processes:
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Sell my current stock holdings and sit on cash, learn about new opportunities emerging in the market, completely understand the business and the fundamentals, and if I have a conviction on investing, get into the company.
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Research on maybe 1 company every month from my existing portfolio itself, understand the business model completely and if at the end of the month, I have the conviction that it’s good to hold/increase exposure, make a decision and proceed. Else, get out of it and look for opportunities elsewhere.
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Use the forthcoming 2017 to completely understand value investing framework, identifying opportunities, understanding business fundamentals, valuation mechanism, capital allocation, identify red flags and value traps etc. Basically, i want to develop my knowledge levels from an absolute zero to atleast 40% (this number sticks with me as it’s generally considered a pass mark in exams 
To start off, I have tried to put down whatever I am aware of the companies I hold and I asked myself 2 questions:
a) Can the stock double in the next 3-4 years?
b) Do I have the conviction if my question to above is YES.
However, after I thought about my conviction and knowledge levels, I am 200% sure that this borrowed conviction will be proven wrong. I am still undecided on how should I proceed with my existing portfolio. I shall maybe sleep over it and find an answer.
Stocks Portfolio Review.xlsx (16.2 KB)
Any comments and suggestions from VP Forum members are most welcome. Wish you all a very happy, prosperous and knowledgeable New Year 2017.
Best Regards
Varadharajan
