Evaluation of my portfolio

Hi,
I have been self studying about value and growth investing. Have read a few books. And based on that have done some investing over past 12 months. The no of stocks are 33, which I feel is too much.

I am sharing my porfolio and would really like to get feedback / opinion from all the members who are very accomplished.

Should I be reducing the no of stocks from 33 to say 20. And also other observations.

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Few observations:

  • Some solid names are there and you need to keep riding your winners and cut losses.

  • Bring your portfolio sizes to less than 20.

  • I dont find any Chemical names there. Yes,Most of them are damn expensive but you can consider some in Chemicals.

  • There are lot of Weightage to Banking/NBFC. You can trim some of those where you have negligible weightage or where you feel there is no valuation comfort at all.

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Hello…what books have you read on different investing style?

The Intelligent Investor
Coffee Can Investing
One up on Wall Street
Como sense investing
The Psycology of Money
Poor charlie’s almanack

But ofcourse need to re-read the books a few times.

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Which stocks to remove ? Suggestions with reasoning would help.

Very good names.
If I had this, I will remove PSU Banks now. Highly dependent politically. I will move that allocation to HDFC Bank to have lower volatility, better stability and assured growth in Portfolio cagr.
One need to have a serious look at allocations. How sure you are that high allocation one’s will give at least 15% cagr for the next 5 years?

Hi Vineet,

I have been investing for more that 15 years now, started like you and went through a learning process (most likely similar to what you will perhaps go through), and my learnings are as follows. I do realise it is difficult, if not impossible, to change anyone’s ideas or decisions, but do consider the below in your final decisions on how to invest.
a. Instead of buying so many stocks, it is better to simply invest in an index fund (Nifty 50, Nifty Next 50, Nifty Quality 30 etc.), and focus on asset allocation (having a lower % in equities when everyone and their mother are investing in the equity market and a higher % when the everyone is talking about the end of the world) and your chosen career. You will most likely end up with similar or more returns & wealth, with much less stress and more time to do other things in life. This will also make it simpler for your next generation to follow, in case you decide to leave them this wealth.
b. In case you believe you are better in picking stocks, then allocate a small percentage to this exercise, buy only very high conviction stocks that you can count with one hand and diligently track your returns viz.a.viz the index over 5-7 years. Once you have clear data proving that your skills are better than that of the market, then start allocating higher percentages.

Keep reading and learning!

Regards
Shivram.

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Please review my stocks

I wont suggest which stocks to remove but you can think on these lines :slight_smile:

  • If you have any stocks which are less than 2 % even if they return you 50% how much contribution it has on your portfolio? It wont move the needle right.

  • Check out the sector allocation as well. Don’t have any sector more than X%

  • If you feel the story is changed in any of the stocks then please sell it off.

  • If you have found any new opportunity then sell the least conviction stock

Most of the stocks in your portfolio are largecaps and are present in the index.You can go for mutual funds instead.Also there are some good names in the chemical sector.Some of these stocks are down.Alternately,you can add some value stocks

I have gone full circle: first attempting to day-trade in stocks to earn handsome returns then realising the extreme challenges and difficulty and then switch to swing trading, again realising it’s not as simple and easy then to investing in stocks and finally landed with MFs.

Hence, I have spread my portfolio by upto 90% in MF and am using 10% in direct stocks till I feel confident to generate more returns than MF.

Within MF I have spread across Index Funds (Passive funds), Large, Mid, Small cap (Active Funds) most of them direct funds as follows:

Objective is to get a return of atleast 30% or more in direct equity.

Since the markets are at an all time high, hence I have not fully invested and am going via the STP way. Mix of Monthly and Weekly STP. Am timing the STP so as to invest when the NAV of Switch-In equity MF is minimum historically on Monthly and weekly basis (this itself can give an alpha of upto 0.5%, pls additional alpha by opting for Direct MF and then also selecting some variable strategy like Booster STP from ICICI which is based on Equity Valuation Index, which can give upto 2% additional alpha)

So my major amount is invested via MF route while I try to develop my skills to atleast get 30% per annum via direct equity.
Am working on developing various algos for Investing / Swing trading.

I am looking for a platform where I can do comprehensive and detailed back testing, using Techno Fundamental parameters.

I am looking for suggestions for various platforms available for developing up algos for Swing Trading and Investing. Where I can do detailed back testing.

I have the following thinking about India’s # one bank i.e. HDFC Bank and the other two top banks of India (ICICI and Kotak)

They have grown fast not only because of their Good corporate governance, management, technology adoption but also due to horrible mgmt, service, corruption of PSUs in past, especially during UPA era.

Hence, with the PSUs consolidating and slowly getting their act togeather, reducing NPAs, the substantial advantage enjoyed by top 3 pvt banks will reduce, inturn affecting their rate of growth.

But yes, I have read in numerous articles that financial sector is poised for huge growth and will be one of the top contributor in India’s march towards 5 Tr economy.