GP Portfolio review

[smallcapvaluefind]

thanks a lot Chaitanya for your kind words

i usually am a very conservative person so i think value investing is part of my nature. Infact my 80% of portfolio at even such good time is in debt fund and that has been the case for last 10yrs now. I invest around 20% of my investment only in Equity and those are highly value based

Now my investment style if i think about my above portfolio while i was making investment is as below

1. Very high risky play
   Sangam, Cadys, Alufluoride, TAAL and Shemaroo are very high risky play where people can loose 100% money. I usually do make such bets which has been both hits and misses. Just as example, i purchased Archit organosys 2 year and i lost 75% on that. That company was profitable but since it was expanding 4x , opportunity was huge on those companies while it didnt turned out the way i wanted and had to exit. Learning i had from that was never invest in a growing company where D/E is high while CWIP . This is the learning i am trying to implement now in Alufluoride ( reason given in a separate post) which is a very niche player and making significant expansion however even with that D/E is very low . So on Risky bet it has been hit and miss but i think it has helped me to learn and evolve in market and keeps me excited.

so given out of 20% equity, this represent 10-15% of my portfolio i.e. 2-3% of my wealth so i dont mind to be honest

2. Second category, my first criteria is always a company which pays a decent dividend as i do like those cash flow however dividend should be like 10-30% of EPS and too high div means company is not using money to grow which is also not good. I like steady cash inflows

3. i do like companies which has demonstrated good profit in past and within their sector most reasonably priced. for Banking i have developed my own methodology which i have used in past too and refined with my experience over time. People can say its a weird methodology but its something i have developed over time

DCB Bank - Steady performer

Hi All I was trying a way to find the cheapest stock in banks and used the below methodology. what you all think? I use an average of P/E x Gross NPA% AND P/B x Gross NPA % to find the lowest ratio along with those banks only where Capital Adequacy is >12.5% as required by Basel norms on a conservative basis** Many of you might be seeing above stock-picking methodology for first time. Reasons for this is as below Example 1: Suppose you have two stocks with a P/E of 10 and Gross NPA of 1% an…

4. Some of the winners i plan to sell are those where i dont see a upside beyond a certain level like GHCL as soda ash demand itself in market is not huge so i dont see great future of company. I bought this as company at that time did a decent buyback of ~3% of capital at 175 levels while it was trading at 100 thus showing management confidence while due to market crash its price corrected. I took the opportunity to buy but i usually try to sellout once those company which are not very unique reaches a certain level

5. I usually stick to niche company even when price is 1-2x like his HAL i am very bullish and might not sell so yes no price in mind at the time of investing

lastly in short time i have learned so much from this forum. I hope to keep learning here and contributing to this lovely forum