I finally managed to convince my father to move a part of his real-estate investments to equity. So I am trying to build a portfolio for him which has low volatility and yet gives decent return (inflation + 7-10%)
The criteria for selecting stocks in the portfolio is
There should be huge opportunity size available to business for growth.
It must have sustainable competitive advantage to ensure that large opportunity is captured in its bottomline.
Management integrity is not questionable.
Such a stock, if well discovered, will trade at high earning multiple, carrying only valuation risk, as there is no management quality or business quality risk. Hence we plan to buy the stocks in the portfolio in a staggered manner, investing a fixed amount every month.
Following is the portfolio:
I intend to hold all stock until
Its competitive advantage starts eroding away.
I find a better opportunity
Hence I am actively looking for pointers which suggests the competitive moat may be weakening in my stock picks or suggestions to replace my pick with idea having better prospects will lesser risk.