So, finally found the courage to get post my portfolio after spending a lot of reading here here while p/f is still evolving. I’m 35 and single - portfolio goal is for long term wealth accumulation. Have other investment in mutual funds, real estate, fixed deposits, etc
My close friend has set up my portfolio 5 years ago and I didn’t have time / interest to analyse and invest in stocks – had kinna forgotten about it and didn’t track performance (now i know that passive is a good strategy :)). His picks were extraordinary and gave superior returns (e.g. Piramal at 380 levels and Hatsun at 350 levels ) so much so my p/f is still in green and allocation looks a lot skewed!
I don’t have proper price history as had to change brokers in between.
Anyways, cut to the chase, he got busy and now am investing on his advice (his watchlist) plus my own efforts (still learning about Mr. Market and made few wrong calls) for the last 9 months!
There are great names in your portfolio. Moreover the allocation% to them shows strong conviction. I will however raise a few concerns on some companies:
Wonderla/Shemaroo/Mahindra holidays- I have not studied them all in detail. However I urge you to have an in-depth conversation with someone who does and understand the risk that these companies entail.
Care ratings- Ratings agencies do well in bull and go almost bust in bear markets due to the mistakes in bull. If you want to invest in ratings agencies I will recommend Crisil instead.
Max Financial services- For insurance I would recommend an HDFC company. Insurance as a sector is performing very well right now, however in a downturn cycle, you need to know which ones will be able to stand on their feet.
TCS- why such a low allocation?
Why hold RBL bank if you understand and have HDFC Bank in your portfolio?
Piramal as your top holding, do understand that it has 2 very different business segments of Finance and Pharma. Also Piramal Enterprises hold 10% in Shriram Transport Finance. You already have an exposure from Shriram in your portfolio, do you need it individually as well?
Thanks for taking time to provide your feedback! On allocation, it is more of magic of compounding - of course there is this conviction that I can continue to hold hoping for past spectacular performance to repeat. All small allocation (except Maruti where I went overweight to make quick buck but ended up being bad call) is my last 10 months work wherein higher weightages are ones which have grown over last 5 years.
Both Wonderla and Shemaroo face headwinds but I expect both businesses bounce back - Yes, am tracking them both. Mahindra Holidays allocation is more of tracking position, haven’t developed conviction.
Point, keeping an eye on HDFC and hopefully will add to portfolio soon too. Been holding Max for 5+ years and given decent growth so don’t see reasons to sell.
Valuation. Will accumulate in dips. Same, with Titan too.
Basically mid cap with lot of room for growth compared to HDFC, again tracking position - reading more before I take the plunge. Tracking position helps me commit to follow and research, more like a token
Add Large Caps to lower the Beta on your overall portfolio. You must be feeling the pain right now with the Small and Mid Cap index so far down.
Add some macro theme stocks like RIL, HUL, PGHH, DRL etc that will give you the diversified, FMCG and Pharma to this list without adding a high amount of draw downs.
Start to put some amount in Nifty ETF as well as Gold ETF, even if you do SIP into them once a quarter or year or at Price Low points. This will give a new twist to a LT portfolio.
Derive the max value that you want to achieve out of each stock and position, and even I am not able to do this with any consistency. Whenever I have done that with some reality and STEPPED out of the stock, it has been my best decision#2. Best decision#1 is to “hold”, “hold” and 'hold"
None of the above applies if you are a trader. But, you have to be 80% Investor and 20% trader, which will do you a lot of good. Easy to say, hard to do.
We have a PE in the stock market. That PE has a different meaning to the people who have been investing for a long time.
Stock Market = Pain + Euphoria (PE)!
If you don’t want Euphoria, then you will not have Pain, but simply staying away from the markets forever. If you want Euphoria, then Pain will be part of it. When you play the stock market, you are playing “Rugby” or “American Football”. You can make the goal, but you are going to get ‘hit’ also!!!