Anurag's Portfolio - Beginner's Portfolio Feedback

Hello everyone, I hope you all are doing well. I’m Anurag Gupta currently a 3rd Year undergrad student. Its been just 1 year since i have started investing in stock market. I am just a beginner and there’s a lot to learn.

Here’s my portfolio which i have created -

My market cap wise allocation -

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My capital is only about 1.7L.

Thank you for taking out time and reading this. Looking forward to your opinions/views on my portfolio.

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Please also write your rationale, why you invested and chose these stocks.

From the face of it, here is my view.
Not going to sugar coat anything and give you honest feedback, so take it or leave it.

I would sell everything and take that 1.7L and put it in a single company that I have understood and researched very well.

A Rs 3000 position in PVR or a 10000 position in Titan doesn’t create meaningful wealth even if they were to go 100x from here.

Stick to things you know, and learn margin of safety. Buying Adani Green at 900+ doesn’t provide you with any margin of safety.

Would advise you to learn more about investing before you dabble in stocks.

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Hi @anurag23, since its very early stage of your investing career. IMO you should not diversify much and should take some risk in some concentrated holdings.

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@anurag23, Glad that in your early life you started investing in direct equity. You are a student and I fully understand your capital of 1.7L is like 1.7Cr. I see you have already several stocks in your portfolio and as some one pointed out it is important for us to understand your thought process behind selection of those stocks. Also IMO, your allocation to 71% large cap do not make sense (unless you are a low risk investor). At your age, you could afford some higher risk, hence I would go for more of high quality mid and small caps having multibagger potential. Good luck !!

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Deepak nitrite and HCL are good stocks.But stocks of steel,metal,power,Telecom,energy, Auto and ancillary,airlines, cement are cyclic in nature.Also HDFC is held by mutual funds.Lauras labs has good fundamentals at higher valuation

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Really grateful for the honest feedback.

I will be putting up the rationale for the companies soon.

My main thought behind allocating small amount in PVR, indigo etc. was I could take the advantage of averaging as I get in more cash in hand.

Adani Green was really a impulsive decision.
Adani green having weak financials - EPS being too low for over 3 years, Having extremely high PE, High borrowings.

Thanks for the advice, Have to learn more and try not make impulsive decisions.

Will reduce the number of stocks.

Yeah, I have to work on this. Thanks for the comment!

Yeah, have to do some research and allocate more into the mid and small cap.
Thanks for the opinion! :raised_hands:

How to know whether a company is at higher valuation? As you said Laurus labs is at higher valuations but we have also seen significant growth in the revenue and net income of the company. If a company is growing is growing at this pace. How can we find out is it is overvalued?

You have done well by staying in large cap more. You have to experience a market crash in which your large cap portfolio will help.

You should invest more in mid and small caps after you know how to research them. Otherwise just large caps or etfs or mutual funds.

Keep it up.

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Thank you for the kind words, I’ll look into it.

I dont think you should reduce stocks if you have convicton in them and want to track and grow as investor…keep doing what you are doing…even if capital is small, learning will be huge if you try to track and follow decent number of stocks…and as you mentioned in one of your post that you can average and grow your portfolio as you get more funds so its good to track more and be ready with your learnings …

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Everyone can have a different approach to investing and different goals, capital availability also varies from person to person.

It is very important to learn to really respect the market, not be overconfident, and most critically, never take a position of so much risk which demotivates you from investing in the future. To stay in the market is possibly the most important bit.

I would say there is no problem in your diversification, till you are able to track each company you invest in. Usually that is not possible for most investors with so many stocks, so reducing to a number you feel comfortable (maybe 10) in tracking the number (understanding the business in and out and tracking different aspects, not stock prices) could be a relevant strategy.

Just remember - at 15% return per year you double your money every 5 years. At 25 percent you double your money every 3 years. Most great investors can’t do the latter. Even if you do the former - 1.7 lakhs will be above 1 Cr in 30 years. And most importantly, would have kept you in the market and learning, enabling you to put in future capital judiciously and invest in companies you love. The big positive is you’ve started investing early which gives you many years of compounding ahead!

Good luck

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Kudos to your start so early in life. I am sure you are going to make killing in investing career may be 20 years from now.

IMO, I concur with @Tar with his view broadly for you. But at the same time based on my experiences you may chose to go slow steady diversified and smaller bets.

But before all that, first thing is to know your temperament, psychology, family conditions and future financial goals. Most of the things in investing has to be learned in very hard way but borrowed learning is of little use, it has to be experienced in a crude and devastating way.

My advice per your age is to grow your capital first before thinking of making profit in investing. Very long term is the way to go.

Happy investing.
VK

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Glad that you are risking your money at this stage, I did the same. The lessons you learn now will help you do much better later when you do have more to invest. Given your age, use it experiment and learn to figure out what works for you. Reading takes you only so much. I have seen my small cap bets disappear and that was very hard to accept, but now I am much wiser for it. Don’t worry about concentration, diversification etc. Heck, I used to buy for 500-600Rs from my small savings(did CA, and general stipends are 4-5k a month) and read up a lot just to do that. That 500-600 then feels like 50-60k today, and maybe in the future I would feel like that about 5-6L.

I know it takes effort to come and share this, congrats. Do not be disheartened by harsh comments and be afraid to invest more. Stay motivated. Only rule which I follow: if an invest makes you lose sleep, then it isn’t the right invest for you.

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I’m really thankful to each one of you for taking out time and encouraging me.

When i started out a year ago i had made a lot of mistakes like having FOMO, panic selling, getting influenced by some social posts etc.

In the beginning i even invested in some companies which were constantly hitting the upper circuit, thinking ill make amazing profit in few days and exit out. At the end it was what i didn’t expect.

But above all im constantly educating myself and learning from my mistakes.

Thank you all for supporting me. Looking forward to learning a lot from this community.

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You know it is bull market when people are suggesting beginners to look for multibagger stocks in mid/small caps. There is absolutely nothing which suggests that mid/small caps give higher return. Infact last decade it has been the opposite.

Most experts don’t beat the index after a market cycle. And index generally returns few %ages more than inflation over a business/earnings cycle. Managing expectations is important. For most people stock market won’t make you rich or give 15-25% returns over multiple market cycles. I would suggest to buy index with large part of your money and focus on building and adding more capital instead. Rest you can buy a few companies you like and understand.

About your individual stocks, I have nothing bad to say other than Adani Green and PVR, which can be potential minefields.

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I fully agree with you regarding your quote that concentrated portfolio is the way to create wealth - I myself follow that approach. But for someone who just started and with a limited capital isn’t it dangerous to invest everything in a single stock? No matter how well you research and understand the company/business, there is always a possibility that a particular stock selection can go wrong for different reasons. Does a newbie has stomach to digest let us say a 50% draw-down and stay invested? Does one know the concept of stop-loss -etc. to play safe in case of a black swan event? Many new investors who face such losses during their early days eventually leave the stock market and never return. In my view it is better to start with something like 10 stocks with 10% allocation each. Just a contra view. Thanks!

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Agree, the two biggest risks of Market -

  1. Not being a part of it for some reason
  2. Market going into something like a Great depression spanning generations

Rest all are opportunities to be grabbed!

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