These days I have only one portfolio of stocks and thats aligned to techno funda or momentum investing. Its worked out quite well since past many months and as long as it keeps working for me, and as long as I feel comfortable with this style, I dont see the need to change it.
Once you start practicing a certain style of investing and are comfortable and successful at it, its often difficult to practice different styles of investing in same portfolio. I have seen guys have a core and satellite portfolio but I have found that its not my cup of tea.
In the techno funda style too there are certain long term picks which can be held for long periods of time. A recent buy in my portfolio has been M&M finance. Its a sort of unlock trade. Idea here is to look for companies with good business model and good management which was severely affected by Covid. And now with Covid receding (hopefully) these are the very companies which would start coming out of the woods and show good business momentum.
MM fin was affected severely by Covid second wave and had to make big provisions in first quarter because of NPA norms. In q1 concall management was quite confident of reversing these provisions going ahead. And that’s exactly how it has played out in q2. With reversal of provisions, the numbers reported for q2 appear very good. This reversal of provision should progress into next 2-3 quarters as well though to a lesser degree. With improvement of asset quality coming through, next target for management should be to focus on AUM growth and that is expected to be seen in FY 23.
Reading and researching MM Fin has been a great experience in looking at turnarounds in the financials. First all the information needed is out there with presentations, annual reports etc. Plus the management in its concalls tends to spell out the oncoming scenario quite well and its easy to visualise how they plan to go ahead.
@hitusohi1 I dont track relaxo closely but for long term compounding it remains a good bet.
@A_shah I dont track astral poly.