Harshal's Portfolio

Q&A: Questions & Answers Portfolio Q&A
1

Hi All,

I started investing in share market after hearing my office colleagues talk about stocks. I have to admit that I have zero knowledge of technical or fundamental analysis. I don’t know how to read balance sheets or the quarterly results. Still, as I didn’t want to miss out, I bought stocks relying mostly on recommendations by my colleagues (who are amateur enthusiastic punters at best). In my excitement I invested too much money without doing any research and thinking stocks will only go up.

The crash in March 2020 was a rude wake up call and I realised I need to properly manage my portfolio and while searching internet for some guidance, I stumbled upon this beautiful Valuepickr forum where there is genuine insight on companies with none of the regular nonsense that was found on other stock market discussions platforms.

Here’s my portfolio with percentage allocation:
Infosys ~10%, Avg Price - 703
InfoEdge ~5%, Avg Price - 2243
L&T ~10%, Avg Price - 1297
Ramco Cements ~5%, Avg Price - 672
Havells ~5%, Avg Price - 526
Pidilite ~5%, Avg Price - 1401
Aarti Industries ~5%, Avg Price - 740
PI Industries ~5%, Avg Price - 1165
Bayer Crop ~5%, Avg Price - 3790
ITC ~10%, Avg Price - 233
Bata ~5%, Avg Price - 1326
Reliance ~10%, Avg Price - 1300
HDFC ~10%, Avg Price - 2105
HDFC bank ~10%, Avg Price - 1120

I don’t have much justification for these picks, other than that these companies seem good for long term.

I request the wise minds here, to please help me construct a stable long term portfolio with more than 10 - 15 years time horizon. I don’t want to be invested in companies which will need constant monitoring because even if I do, I won’t know if something is wrong before it’s too late. My goal is inflation/FD beating returns over longer period.

Some changes I am considering:

  1. Replacing ITC with HUL or Nestle to provide more stability?
  2. I want to add a pharma company, but I have no idea which one to pick between Divi’s Lab and Abbott.

Thanks
Harshal

2

@Harshal

I think, since you are a new investors with zero knowledge of markets, better stick to high quality large cap names (10-15 max) for now until you learn some basis. In any case your time horizon is long term 10-15 years, it should provide some decent returns.

As regards to your picks i would give a serious thought on L&T, Aarti and Ramco etc. as they carry debt on their books. I hate companies which carry decent debt in their books.

In terms of FMCG sector, i see only one name ITC. Yes, it is a value buy stock for long term, however i would add big boys like Nestle/HUL if they are available on correction.

There are a plenty of Pharma names to chose from.

Just be careful with Financials and track them closely until COVID is over. All the best.

Disclosure: Except Abbott India, i have no investments in any of the stocks mentioned by you.

1 Like
3

@sameernics
Thank you for your inputs. I will start adding HUL/Nestle over a period of next few months.
Regarding companies with debt, should I just exit them and stay with remaining picks or should I add alternative companies from same sectors?

4

In fact, HUL had corrected from its recent highs, hence you may slowly start adding few HUL and keep averaging if it falls further. Nestle need to correct some more.

Yes i would exit L&T, Aarti and Ramco and use this money to enter debt free Pharma and Speciality Chemical names.

5

Apart from Ramco and Bayer Corp which I do not have much idea on, this looks like a very robust PF.