Used to see this site for long time. Finally decided to jump in. Here is my may be weird and unconventional portfolio. My inherited portfolio is a gift from my late father that is running at least for more than two decades. I started in 2002 but used to simply invest in IPO and still holding on those stocks. Recently for last two years have actively started investing. But looking other portfolios I am holding too many stocks. Overall I have got like 20% returns but my recent one is barely break even. Hope to move towards more concentrated portfolio.
Your portfolio reminds me of how I first started out investing… used to have upto 50-60 stocks
I think you have good concentrated allocation to some bluechips (HDFC, HDFC Bank, TCS, RIL, Glaxo, Petronet) that can form a core to be held long term. There are several stocks that have been struggling fundamentally for past 1-2 yrs that can possibly be exited( e.g Deccan Chronicle, Reliance Communications, Onmobile, MRPL, REl Nat). I’d also use the current rally to exit stocks like Thermax, Crompton Greaves, Idea Cellular, TVS Motors where growth is slowing down. Also might consider selling out stocks that directly depend on govt policy(ONGC, GAIL, NTPC).
This pruning exercise will give you around 4.9% more cash & leave you with 25 stocks. Some other positions that I might consider selling out are: ILFS, Gujarat Gas, Bajaj Hindustan. I think most stocks actively discussed on valuepickr will give better returns than these 3.
Or else if you have followed closely the stocks you own then you can add to some of the smaller positions.
I wouldn’t rush in to a concentrated portfolio just coz everyone else seems to be leaning towards that strategy. Best to stick to a strategy that is compatible with one’s temperament, skills & time available to study stocks.
Thanks GreyFool. I have planned phased exit from most of the stock you have mentioned. I fact I had somewhere around 60 stocks. Trimmed down to now around 37-38. Goal is to keep 15 stocks. Any views on Dishman? Will be good to keep it at current level or get rid of it.
Dishman can be held till targets of 135-140 levels based on 10x FY13 EPS of 14 Rs (expected).
However, the rupee appreciation is a double whammy effecting both revenues (negatively) and borrowing cost (positively). The company posted negative bottom line in Q2Fy12 so based on the low base should post robust numbers in Q2FY13. Hence positive levels post Q2 results can be considered for exit as well.