I HAVE STARTED IN MARCH 2020, AFTER READING UP ON INVESTOPEADIA, AND CHECKONG ON STOCK SCREENER, AND TRENDLYNE.
I HAVE BELOW MENTIONED STOCKS, WHICH HAVE BEEN ACQUIRED ON BASIS OF THEIR PAST PERFORMANCE . I DONT KNOW HOW TO DO VALUATION, SO THEY MAY SEEM EXPENSIVE.
**ALOK TEXTILES - I BOUGHT THIS DURING LOCKDOWN 1, AFTER IT WAS BOUGHT BY RELIANCE, SOLD ENOUGH TO COVER PRINCIPAL AMOUNT INVESTED. LEFT THE PROFIT TO SEE WHAT HAPPENS TO IT.
ASIAN PAINTS- GOOD STOCK, BOUGHT IT FOR LONG TERM, AS LONG AS I WILL BE IN MARKET.
BIOCON-- BOUGHT THIS AS I HAVE READ ABOUT THEIR EMPHASIS ON RESEARCH AND DEVELOPMENT.
CHALET-- BOUGHT THIS AS I AM HOPING AS SOON AS COVID NUMBERS GO DOWN IT WILL JUMP BACK AND FOREIGN TRAVELLERS COME TO INDIA.
DIVIS LAB- BOUGHT THIS AS AS I HAVE HEARD THAT MANAGEMENT IS GOOD.
ESCORTS- FOCUS ON AGRICULTURAL THEME.
HCL TECH- I HAVE READ THAT THEY HAVE LESS FIXED COST ON EMPLOYEES.
HDFC LIFE-- GOOD PRIVATE LIFE INSURER.
HDIL- THE REAL ESTATE COMPANY IS IN NCLT AND PERFORMANCE ALONG WITH PRICE MAY SHOOT UP, IF BOUGHT BY ANY GOOD PROMOTER.
HINDUSTAN UNILVER- GOOD PERFORMANCE AND RANGE OF PRODUCTS. NO EMPHASIS ON SIN PRODUCTS LIKE CIGARRETE AND ALCOHOL
ICICIGI- TO ADD GENERAL INSURANCE, OTHER THAN HDFC LIFE INSURANCE.
LARSEN AND TOUBRO INFOTECH- ON BASIS OF THAT, IT IS RELATED TO L&T.
NAVIN FLUORINE-- I HAVE HEARD MANAGEMENT IS GOOD, AND DATA IS GOOD.
RELIANCE-- ALL IN ONE BEHEMOTH, ESPECIALLY DUE TO JIO GROWTH.
TITAN- QUALITY PRODUCTS, GOOD MANAGEMENT
VINATI ORGANICS-- CHEMICAL SECTOR IS DOING WELL AND IN BACKDROP OF CHINA SCENE WILLL BE STRONGER.
ALL STOCK HAVE 5 % WEIGHT AND 20 % IN CASH OF TOTAL PORTFOLIO.
16 * 5+= 80 + 20= 100
ADVICE IS REQUESTED SINCE I AM NEWBIE. I WILL GIVE FURTHER LOGIC ON PURCHASE OF STOCK, AS PER QUERY.
Thanks
I had a few suggestions that you might find useful.
Would request you to please not use all caps. It creates an effect in the mind of the reader that the author is shouting the sentence. This makes it difficult to focus on the content.
I would suggest adding stock specific rationale for all your stocks as a good way to capture your own thinking at the time of buying the company’s part ownership. You can also evaluate your logic later on and hence your future self can evaluate your past self’s decisions and thus improve your investing over time.
Most of the companies you have seem good. It is also good to have independent conviction in the stocks you’re buying because when the stock price goes down, it’s only your own conviction which saves you from selling due to an anomaly in the stock price.
What is your portfolio objective?
What percent of your net worth is invested into this portfolio?
What is your investment horizon ? Do you need this money after a few years to take care of any objectives?
Please try to think through and answer these questions so that your objectives align well with your actions.
Thanks for the suggestions.
I realize the mistake in typing in all caps and will not do so in future.
I have made a diary since last week to write down why I am buying and also to note certain companies which I am not buying even though they have come to my notice.
The amount invested in the portfolio is not a substantive amount as per net worth, and is not required till at least 5 years.
Please also look into the sectors involved and if any change can be made regarding this.
Thanks.
Some of the companies in your portfolio are very good and diversified. However, tracking 16 stocks is too much. I suggest just stick to max 10 that are fundamentally very strong. Also since you are a beginner, I would suggest you to stick to solid large cap names till COVID, US election events are over to minimize the risk. All the best.
Betting on HDIL is too risky. I feel you shall exit HDIL. Shareholders have not benefitted much in most of NCLT cases. Betting on this companies is akin to bet in casino.
Better to shift to some other real estate company .
Most of your stocks are proven large caps, you brought at March lows and portfolio size is insignificant compared to your net worth, so why are you anxious? I think this is most important for you to understand yourself as an investor. To be long in Markets, Anxiousness should reduce to enable take decisions in your favor. You need to think what makes you anxious holding these companies and target those points one by one…
Most of the companies which I have chosen are on basis of past performance.
However I don’t know how to calculate the real price at which I should have bought them and how to guage whether they will perform well in near future.
I am not sure if there is any sector in which I should invest,and if it is missing …
These are some of factors on which I needed some guidance.
Moreover, Biocon which I bought has a good operating profit margin, and sales growth over 3 years is good,but does it mean I should buy even when return on capital employed is less than 15% and PE is 71. Reason I bought biocon is also because of fact that I heard it is heavy on R & D.
I would appreciate if some guidance is given on these points and especially in case of biocon
If you have started investing in March 2020 you need to cautious and invest slowly without getting carried away by recent healthy returns.
BIOCON - Due to higher R&D spend, CAPEX and longer gestation period, the return ratios are currently low. To understand more about BIOLOGICS, read the respective thread. I found this paid session (Rs 200) very informative if you are new to pharma sector. To me, it seems expensive at current price after the resent run so don’t urge to buy. As it is a multi year story, you can consider SIPing or buy at dips.
Thanks
Actually I sold some stocks of my portfolio completely,after seeing hefty returns.
Later again, bought same shares.
Is this correct ?How long should we wait before selling?
