Added V-Guard,Kajaria,V-Guard and Unichem. Also increased most of the core holdings. Struggling with the overall portfolio allocation since my wife is strictlyagainstequity investment. Not been able to convince her. Currently its more or less the equal allocation. ie about 33% in equity, 33% in debt basedinvestments and33% in land (not the house living in. also its all inherited. idon’tlike real estate at all). current strategy is to put all my monthly salary into equity and all my wife’s salary into debt based instruments. mycurrent debt investment takes care of our living expenses. (more than that). i have 0 debt. but recently opened a LAS account forliquidity. however ihaven’tused it yet.
i would appreciate valuable comments/feedback from the seniors.
Indian wives will always want their hubbies bet on gold or real estate … in the hope that they will eventually get involved . You cannot even counter them since gold and real estate have hugely outperformed anyway
no woman wants to see her husband spending all his time on business channels, pink newspapers and research or annual reports and smiling or cursing at unknown people ;)… like a compulsive gambler … esp because it tends to be a daily never ending process …and they dont even get to see the fruits of labour…
I know the question is for Hitesh. Since I know a little bit about options, I thought I would respond to the query.
If you are bullish on the stock please use bull call spread - buy a lower strike call and sell a higher strike call which would reduceyour cost price. This will help in recovering part of the premium paid. I think option premium is high in Indian F & O market, so it is usually better to be on the sell side by selecting the right strike.
I was digging the market cap increase over the past 10 years for the well known companies in the sectors private banking, NBFC, FMCG, Pharma, Consumer (including the building construction material like asian,cera etc). To my surprise, 15 to 20 bagger looked a very a average return in that list considering most of them gave a lot more. We cant expect the same considering that market cap back then was very small . I will be more than happy with around 4 to 5 times in 10 years. I have added all the companies to my watch list and its nearly 50 companies (;- with most of them trading near the median P/E. This has really confused me. I never thought there would be so many options. I don’t know what buy. After the recent titan developments, I am considering a wide diversified portfolio. Does anybody have a diversified portfolio of around 20-25 companies?. Can you share the experience?.
I have a small investing experience of 19 odd month. In this time I have tried both concentrated (8-10 stocks) and diversified investment strategy (15-20 stocks). In any strategy you will have higher allocation to high conviction stock and lower allocation to low conviction stock.
What happens with me that whenever a high conviction stocks undergoes correction in time-wise (like Astral), or price wise (like Ajanta did when it dived to 800 odd level), I end up selling my low conviction stocks to load up big time in high conviction stock, and after sometime they goes up :). So I end up having a top-heavy portfolio with top 3-4 stock taking 50% odd of my portfolio.
On return wise, I see no reason why there should be difference between concentrated diversified strategy stock return. The stock return should be entirely depend upon how well you can choose stocks, and how well you can time buying/selling decisions.
As far as Titan is concerned, the issue is with the commodity called GOLD, and the its pervasive use as global financial instrument, which makes its price tied to 100s of variables. If you can correctly guess when will china start selling its gold reserve, or how fed’s QE will effect GOLD price, or say hows its price will get effected by next big global crises/boom, than investing in gold, or gold related companies makes sense. Well, some of my friend doesn’t agree that Titan/Jewelery stocks have very less to do with gold price fluctuation, but frankly I don’t know whether there is correlation or not, and hence a strict avoid for me.
Thanks a lot for sharing that. Enjoyed reading that. In fact I have had a similar issue. ( But my selling was not influenced by price not moving. But my conviction level changed after buying ). In the past I sold Ajanta, Astral, Godrej Consumer, Kajaria, Lupin, TTK, Marico, Pidilite, Mayur, Page with small profit or just after crossing buying price). Since then, some of them have gone up multiple times and the rest have given very high returns). The only thing that worked was getting out of Manapuram finance around 70.
I agree with you that it all depends on the stock selection and buy/sell at the right time and off curse the allocation. But I was just thinking of a slightly different approach. I plan to play it in my new demat account. Lets see how it goes.
1). It would be a buy and hold kind of a portfolio.
2). around 25 stocks or may be less. (fmcg, consumption, pharma, private banking, nbfc)
3). Allocation will be more or less the same.
4). TTM P/E in the historical P/E band range
5). Consistent sales, eps growth in the past. zero or low debt, good return ratios, no equity dilution (except financial). has a strong moat.
6). decent earning visibility for a few years.
7). no corporate governance related issues in the past
If you invest in high quality lesser known midcap like Astral/Ajanta, #4 doesn’t hold good for long. Because of consistent growth and increasing market cap, big guys enter the script and a pe re-rating happens. So TTM PE breaches historical mark to achieve new levels. You should be well aware of the above fact before making investing decision.
Regarding #3, there is a valuepickr thread on portfolio allocation. For me %age allocation is directly proportional to
I have moved to a diversified portfolio. My plan is to hold < 30 no of stocks at any point in time. Although it has worked really well, I must admit I got lucky. Because most of the stocks have become market favorites and valuation is stretched. Here is the latest portfolio in the order of allocation. (I couldn’t get the % allocation. Will post later)
[quote="gautham, post:17, topic:149581581"]
> Re posting with allocation and returns
> -6 (Have booked 27% profits)
Wow. I never saw a portfolio with 26 stocks with all names worth investing. It took me 15-20 mins to calculate net returns. I got confused. And then i decided to drop the idea of calculating net returns.
I like your allocation to Page. Keep it up. I think Page will add the highest amount of money to your portfolio with that allocation.
Personally I prefer to hold 5-6 or a maximum of 7 stocks in the portfolio. But the list you have is good list. May be you can track it but don't need to invest in all.
Thanks a lot surya. I forgot to mention valuepickr and the old TED. The sheer quality of posts is unmatched.
You are right that there are way to many stocks. But its by design. 2.5 years ago, I converted my portfolio to a concentrated portfolio. During this time, I sold out a lot of stocks early. Hence I missed multibaggers in Astral,Ajanta,Kajaria,Mayur and 2 baggers (more or less) in Relaxo,VST Tillers,Pidilite, Lupin, JB chemical, Piramal. ( I reentered most of them recently). Also, saw some of the stocks in watch list (kaveri, atul, repco, amaraja, cera etc do very well in the same period). At the same time, my portfolio was dragged by the unperformance of hawkins and volatilty of financials. Thats why I decided to reenter most of the stocks. Then I was influenced by Peter Lynch’s classification of stocks. For me slow growers, cyclicals, turnarounds, asset plays are a no. I wanted to focus on only stalwarts and fast growers.
1). Stalwarts: Dabur,GSK Consumer, ITC,Colgate, Sun Pharma, HDFC Bank etc.
I decided to break fast growers into two
2.a: Fast growers with high conviction: Page, Gruh, Lupin etc
2.b: Fast growers with low to medium conviction: The rest. Since the conviction is not high, there are way too many here. Even if something goes wrong, the damage will be minimal. Also, over a period of time, some stocks in this category will be promoted to 2.a.
I would love to hear your opinion/feedback.