I started my investment journey in July 2017 (my age was 24 then) during the peak of the small cap bull market. Almost all of the investments made during this phase were in low quality small and micro cap stocks which resulted in huge losses by the end of 2018 and i almost stopped looking at portfolio for almost an year. Started focusing on my investments again from January 2020 and made some gains before covid hit. This time I didn’t abandon my investments and started adding better researched stocks from May, 2020, things look much better now and I have recovered most of my losses from 2017 and I have sold almost all poor quality stocks in this bull market and invested in strong names.
Learning’s during this investment phase.
Before investing in the market invest in learning about the markets and stock analysis. I would have never made the investments I made in 2017 if had had read only a few good investment books.
Never invest on random advices from telegram channels, twitter or even from Moneycontrol/CNBC experts. Borrowed stock ideas and conviction never helps. When you invest in your own ideas you either gain immense satisfaction if you are right or you get a good learning experience, neither of that is possible when you copy someone else’s idea.
Investing should never be stressful even during the worst of the days. Stocks that give you the most stress are generally the lowest conviction or random bets.
Portfolio Design Strategy
For me the first and the most important thing is the company’s management, there is no compromise when it comes to the ethics management team
I generally go for companies that have a good balance sheet with manageable debt, a good product mix with the ability to innovate.
Companies with a track of delivering on their promises
|1||ITC||10%||Leader in Cigarates. Growing FMCG. Growth + Dividend. It’s more of an FD with the possibility of principal appreciation. High conviction|
|2||Sequent Scientific||9%||Leader in Animal API. Change in management playing out well. Strong execution and innovation skills with huge tailwinds. High conviction|
|3||IndiaBulls Real||8%||Change in management yet to play out. Huge land and asset base lead by the Embassy group. High conviction|
|4||Jubilant Ingrev||7.8||Valuation mismatch due to demerger. 900cr capex. Ethical management with good execution skill. High conviction|
|5||Jubilant Pharm||6.8%||Undervalued at current levels. Good growth expected going forward. High conviction|
|6||Polycab India||6.8%||Huge potential to grow. Gaining market share. FMEG can be big contributor going forward. High conviction|
|7||IEX||6.5%||Leader in power exchange. Huge tailwinds. Growing market share in a growing market. High conviction|
|8||CDSL||6.2%||Leader in a duopoly market. Huge growth potential ahead. High conviction|
|9||Marksans||5%||This one is a past mistake. Still holding due to the kind of results that they have been posting. Plans to get into API manufacturing for captive use. Low conviction|
|10||Godrej Agro||4.8%||Huge tailwinds. Rise in palm oil prices to benefit. Improving margins of dairy business. Good product mix. Decent valuations. Medium conviction|
|11||Pioneer dist||4.7%||Arbitrage opportunity. Management is trying hard to improve margins and reduce debt. IPL franchise. Market Leader. Can become a cash cow going forward. Medium conviction|
|12||Hikal||4.5%||Cheap valuations. Trustworthy management. Industry tailwinds. Medium conviction|
|13||IndiaBulls Housing||4.4%||Cheap valuations. Rumours of stake sale. Low conviction|
|14||Federal Bank||4.4%||Cheap Valuations. Good top brass. Good asset quality. Medium conviction|
|15||RPSG Ventures||3%||They have a few good brands like Too YUM, Souled store, McCaffine etc. Stake in FirstSource justify current valuations. Low conviction|
|16||Granules India||3%||Decent management. Cheap valuations. Reduced position due lower than expected results. Medium conviction|
|17||RPG LifeSciences||2.8%||Decent Valuations. Good Management. Improving product mix. High conviction|
|18||Sadbhav Eng||2%||Past mistake. No conviction. Will exit if a sudden up move comes given the governments focus on highways|
- GoldBees – To diversify and add liquidity to my portfolio. Current allocation is about 1% and I am slowly adding to it.
- Health Insurance- For when stock investing becomes too hectic, just kidding. It is a must have and should be considered as an essential investment
- ELSS- Will move this money to stocks when they mature next year. No investing in ELSS schemes anymore.
- PPF- One of the safest and the best debt instruments with 0 risks and much better than FD returns
- NPS- Aggressive 75% equity allocation. It has so far given atleast at par if not better returns than ELSS schemes. Additional tax saving 80CCD(1B) so no harm in saving extra 50k per year of not much.
There are a lot of things that I still need to learn like proper portfolio allocation, technical analysis, fundaments analysis and controlling my emotions. So I request you all to provide your valuable insights and feedback to my portfolio picks and on how I can make my Investment journey better.
@Malkd @hitesh2710 @gurjota @Malai_Subramanian @ranvir @harsh.beria93 @sahil_vi @MihirDam