image|375x500Hi folks, I got introduced to the markets in July 2017 after my graduation. I wanted to make big money in equity, but feel kinda lost atm. I have made some (rather huge) mistakes over the last 1 year. I request seniors and fellow VP members to comment about pf return prospects for next 3-5 year period. Will surely invest in nazara technologies when it gets listed. ! Am accumulating tata motors Dvr at the moment. Will post rationale in next post behind allocation
Pc jewellers was a low debt to equity firm growing at >15%las year. Thangamyil jewellery and Titan we’re also doing great at that phase.
BEL due to the huge order book. Earnings visibility was there and defence expo 2018 I thought was a big trigger. Maybe I shud have given the shares for buyback.
I am a newbie here, but I do have several years of investing experience. It seems to me, and I am sure that several members will say the same, that your purchases have been too varied (diversified) and I do hope that you have put in enough effort while researching your buys. Secondly, a time period of one year is too less for any visible increase in the value of any portfolio, especially such broad-based ones. I will suggest that you study each and every stock and write down the detailed rationale for your purchase, the price at which you bought and why, the value you expect it to give you and why, and the time you are prepared to hold onto that stock. There is sufficient learning guidelines here, and I suggest you start with the forum entitled “Investing Basics”, and then go on to “Investment Learning”, “Investing Strategies”. There are several other forums where a lot of guidance is available.
It may also be useful for you to go through the website of Dr. Vijay Mittal, wherein he has given a beautiful explanation of how many stocks one should have in one’s portfolio. He has opined that if one has more than 30 stocks, there will not be any difference to one’s portfolio because the gains of one will be nullified by the loss of several others. He has also elaborated that if you are able to find one stock in one year, then you are going to make a lot of money. One simple rule, which I have learned, is not to lose focus. When I am trying to deal with a multitude of stocks, I will surely lose some vital sign from one of several stocks which will cause a big financial loss. I try to keep the number of stocks in my portfolio as low as possible. Instead of buying so many stocks, it would have been better to invest in a mutual fund!
I could go on, but I am sure that there are several more erudite members here who can give much more reasoned guidance. I have certainly received that here.
All the best!
Eid parry holds a lots of shares of coromandel international, is from the reputed Murugappa group. They have a diversified product range and are in cyclical downturn of sugar. If I wait 1/2 years I can see good returns I believe.
TML DVR is on a turnaround so it make sure more sense to accumulate at these levels. Domestic business is showing good momentum.
Am holding websol and kalpataru power because I expect govt to find a solution for stressed power assets under nclt. So people will get to know how valuable these companies can be.
Ashapura minechem because it is India’s largest private miner. They mine bentonite. It is used in green sand moulding. I work in a foundry so I was happy to buy it. Moreover porinju endorsed it
Kajaria I bought on affordable housing theme. And high roce values
I am looking to dispose Philips carbon, highly leveraged play . I bought at froth levels, the RP sanjiv goenka group is getting stronger each day, whenever I see ceat or zensar technologies make new highs I think it is bcoz of sanjiv goenka
I will not be selling aia engg. Gail.
LMW I believe this company can double at least in 1 year time. They make top notch CNCs and Textile machinery. And are very powerful in Coimbatore. They have a casting unit for backward integration. So profitability is taken care of.
This is nothing. I hold 105 stocks in my pf. Just that I am waiting for right entry levels. Stocks like au small fin. Bank, IEX, Vera and ttk prestige are some of them
Their allocations are miniscule tho
if I ever wanted to build a portfolio with more than 100 stocks, I would invest the same amount in all and then I would retire playing a game of dice. Would throw the dice ten times every day, the number of times the dice would show >3 would be the probability of your investment showing a gain-
You got it all wrong.
All I wanted to say that I do not have the capability forced by time and energy to contemplate conscientious attention to the list.
I would leave it to pure chance or probability.
Hope this clarifies.
I really think you need to seriously relook at your approach to stock investing. Quantity does not necessarily mean quality. If you investing in a stock by a justification of just one line, then you might as well buy ANY stock. And there is never a right entry level. I would sincerely suggest that you should write down detailed reasons for each of the shares you have bought, which should be supported by adequate financials. Unless you can do so, there is not much point in just buying a share, and waiting for it to rise in value, for it may not have any intrinsic value in the first place.
The very fact that you have sought views from members here, indicates to me a desire to make improvements in your holdings. Now it is up to you to make that happen. After all, it is your money!!!
Instead of holding more than 100 stocks and monitor them why not buy index funds and keep invested for long terms? Less headache and also almost same returns will be obtained…
Agree that I should trim my holdings to <30 stocks. As a first step, I am now looking at 10yr cagr (stock price) of my holdings. Next,I will look to weed out the <15% stocks one by one at less than 5% loss from my buying price.
While agreeing with this sentiment, I would also reiterate that one should at least be able to justify buy/sell decisions to yourself!!
Before you buy or sell your existing stocks, sort your holdings based on your conviction from high to low and do the following:
- read at least 1 annual report from the most recent one
- review the financial parameters in screener for financial health
- read the most recent credit report and review the credit rating
- read the most recent investor presentation
- review the shareholding
- if there is a valuepickr forum for the stock, read the entire thread
- do a scuttlebutt if possible
You may need to repeat some of these every quarter. Unless you are a full time investor, I am very confident you may not move beyond your top 10 or 15 convictions. That is the reason everyone of us in the forum is asking you to reduce your holding to around 20 stocks.
Depending on your level of experience and knowledge in stock investing, you can invest in the type of stocks in the below order as they will become increasingly harder to value and costly to make a mistake.
- growth stocks
- value stocks
- cyclical stocks
- turnaround stocks
All the best!
i didn’t find any wrong with the stocks you are holding. but my worry is how will you allocate money when these are come down. you have told that you want to make good / lot of money, definitely you can do it. but none made it in short span of time. Income tax purpose only 1 year means LONG TERM, but in true sense it is not LONG TERM ( may be Micro Term, because we like lot micro caps).
All the best for your investing Career. All the comments from our members are really valuable. Please follow and PRACTICE THESE.
- Critical is what is your objective of each stock? What I mean is do you have a level where you will be lightening up on some of the stocks?
- There are times when Large Caps, Mid Caps and Small Caps perform with a different level of vigor and at times the valuations are stretched for a category of these three and hence may need to start thinking about selling or buying more.
- Also, looking at the portfolio from a ‘sector’ allocation perspective is critical. For example, are you too much into IT or Pharma or Chemical or Agro or Mfg or … If so, then a bit of a sector balancing is also critical.
I am curtailing a lot of my thoughts since moderators are a bit ‘critical’ on this forum and just want to give a macro level view. Hope you can read a lot into it (Hari and others).
Been a while since I disclosed my position.
PF losses swell upto 4.5 lacs now inching up. Please indicate whether my top holdings are worthy of more allocation.
PF losses realised + unrealised stands @ 3.8Lacs, 40k loss booked. Portfolio size -20Lacs.