Hello Everyone,
Apologies, i have been on and off with this thread, hope to be more consistent going forward,
Below is snapshot of my current portfolio
Below is my learning over the years, and I may change my Opinion as I wisen up and mature. Please bear with me and I don’t want to sound like preaching sermon.
Never Sell :
This one looks like No Brainer, but I feel its most important attribute and single deciding factor whether or investor makes it large. Frankly and honestly I am blessed with “Hoarder/collector” Genes as is evident from my portfolio which has little changes and mostly addition. Churning, kicking out loser, switching to better position is fine but never empty your Dmat account and move to Cash, Be it Covid or Brexit or IL&FS. Hold your position!
Let your Winner’s run :
Again a No Brainer but last thing you would do with your winners is to tweak them them/Sell out/Rebalance (as long as story remains intact and number supports your thesis)
From whatever I have read about Great Investors (and from my personal experience for whatever its worth) is that they had very few Winners which they let them run uninterrupted and it made all the difference.
The way I look at it is the probability of you finding that one stock that makes material impact on your Net Worth is 50 % or less (similar to calling out coin toss) and if you have got it then leaving it to its own devices may be the best course of action
Bull Market will Never announce itself:
I started investing 6 Years ago and this is my first Bull Market- on- Steroids experience. Never did I imagine that ill be in the biggest bull market of my life after covid crash. Never time the markets!
Good Wealth is made in Bull Market:
Needs no explanation, the velocity with which you Multiply your wealth in a Bull Market is unprecedented. Its magical to wake up every morning and be bit more wealthier then you slept ( akin to be bit smarter every morning then a day before)
Being out and out Warren Buffett fan, rightly or wrongly I feel that him seeing many Bull Markets (and calling out top and going to cash in overheated market in late 1960’s and 1987 Crash) made him Warren Buffett he is today
Be more open to other strategies :
It makes more sense to open to all strategies as markets are dynamic and fluid. And no single strategies works all time and every strategy will work some time.
I still remain Buy-and-hold and Coffee Can Investor but am trying Momentum investing. LTI, LTTS and Tata Elxi are more of Momentum Picks
Position Sizing Matters and probably the most:
Probably the most important learning and I am still yet to get it right and still learning
Let me put in Layman’s term, If You are going to bet then bet big or don’t bet at all, Bet to change your Networth/Balance sheet Size. Go Big or Go home.
It doesn’t mean betting 50 % in a single stock but a 15 – 20 Stock well diversified portfolio and but each position with reasonable allocation weight and absolute numbers is must if you want to make it big.1% or 2% allocation doesn’t move needle.
Buy Companies making ALL TIME HIGH:
Now this one may be controversial for “Value Investors” but stocks don’t make All Time High for nothing and more so if every stock in that sector is making all time high. There is something that markets knows that you don’t and Markets like “fresh” stories. The other way to look at it is if good part of portfolio is making new All Time Highs, then you are on right course.
Surely I don’t mean buy every stocks hitting life time high, you still make those mandatory screening and checks, but is a good place to start
a) Market itself is filtering new ideas and serving on plate
b) There is natural tailwind
Always Average up and Never average down:
I read somewhere that only losers average losers. Averaging up winners and adding to them when your thesis is playing is something that differentiates Men’s from boys.
Only wine gets better with age ??
Ahh, a well Aged portfolio is equally good if not better then a well aged wine