I’ve been involved with the markets for quite some time now. Started my journey with the help of tips and advices here and then. Initially things were going great. It was a great year to begin too, beginners luck that roped me in completely. Then started following the market more. Got into technical analysis. Got into F&O. Long story short made a lot of losses there.
In hindsight it was a combination of lack of discipline, poor risk management, poor position sizing and the biggest reasons - being too reckless and feeling I know too much. And then towards the fag end of that phase the baggage of all the failures made be perform even worse. Certain learning don’t come without a price I guess. My losses made me introspect and realise my mindset flaws and market was the boss. No point questioning it.
I don’t want to go back to that route again in my life. I still believe there’s good wealth that can be built by investing in the markets. And
I want to focus on long term portfolio. And I wanted to do it in the right way.
One of the things I realised through my journey is a lot of things depend on the approach and mindset. The differentiating factor between successful and unsuccessful people. Even though both try equally hard some times.
I request you all to share your thoughts with respect to what I’m mentioned below. Other wisdom is also highly appreciated.
Themes I’m betting on
- China + 1
- India Consumption story
|Stocks in my watchlist|
|Sectors||% allocation||Few ideas||Logic|
|Pharma - API, CRAMs||15||AMI Organics, Beta drugs, Natural Capsules||PLI benefits, Super growth projections, CRAMs space benefiting|
|Chemical||20||IGPetro, Alkyl Amines, Guj Alk, Navin Florine, Best Agro, Syngene||My full time job is cable manufacturing. Supplying to all of these companies, doing good consistent capex and payments have never been a problem. China +1 and now Eu + 1 should help|
|Capital Goods||15||Triveni Turbine, Hind rectifier, ABB etc|
|White Goods||15||Voltas, Butterfly Gandhi, IFB||India consumption story. Household income increasing would lead to purchase of this category. PLI benefits too|
|Auto||15||M&M, Tata Motors, Pricol, Mida||Auto seems to be in a bull run. And auto and auto ancillary could deliver good results. Looks like the Auto upcycle has become after long years of consolidation|
|Solar||10||Borosil Renewal, Swelect||PLI benefit, China+1 and solar is the future|
|IT||10||Tech M, Wipro, Persistent, Cyient||Contrarian bet. I feel IT sector has bottomed out|
**My concerns **
- While getting trying to get exposure in a sector. How many companies should the investment be broken down into? E.g for chemical sector should one attempt to pick up. 2 companies or 4?
2. And within that sector what should be the approach? Should one have exposure in the market leader too? Or just focus on niche pockets
3. Should companies that are claiming 25-30% CAGR growth over the next 3-5 years be bought even if their PE is high?
4. How to decide when it’s a good time to start buying? And should the investment be done in 2-3 trenches or in one go?