Made some progress on removing stocks I didn’t have much confidence in or was holding on to without any solid reasoning. Also added all stocks in my portfolio with at least 1.5% weightage.
Industry based breakdown and market cap based breakdown of current PF
Reasons for cutting out some stocks from previous update
-
Removed Ujjivan small finance bank and yes bank: Low quality, used the capital to invest in more robust companies.
-
Removed Motilal Oswal: Looking at ICICI Sec or Angel broking currently as they’re in similar business but have been much more adaptive to the current scenario. Also they’re more focused in terms of the area they operate in and also more tech focused and have increased their user base substantially.
-
Removed LT: Feel like GR Infraprojects could be a better substitute. It is growing very fast and consistently. LT also seemed a little overvalued at 30+ PE with a 6% 5 year avg sales growth
-
Removed ITC, IOCL, IRFC: Good businesses but I’ve changed my view from dividend to growth investing, especially given the 30% tax on dividends.
-
Dhampur Sugar Mills: Ethanol play working out for the industry, especially given the Russia Ukraine situation. I removed it from my portfolio after its recent run up.
Next steps I’m planning:
-
Currently planning on cutting down on some IT stocks and add a little bit more of Sportking. I find the business to be really high quality combined with being at the right time to be expanding.
-
TIPS: Need to watch it for a few quarters to understand the consistency of revenue and profits as recent past has been fluctuating. Especially as streaming seems to be gaining more steam.
Apart from the above, I also added some US stocks to my portfolio:
Strongly believe all these stocks fell with the broader market unnecessarily and their growth story is still intact, especially Facebook and Alibaba which seem deeply undervalued to me. Brought almost all of them at their absolute bottoms around 1-2 weeks back.
Finally my asset allocation looks something like this:
Based on earlier suggestion of cutting everything less than 4%, I don’t feel like that’s a right strategy for me as I like to add a stock with <1%(just to have some skin in the game) and then dive more into it. If I feel confident enough in the business and current valuations, I start adding more slowly, else I exit.