In the stocks that occupy your top allocations, it is imperative that you know a lot about the business and more than most people. So I have to understand the business by reading the annual reports, going through the presentations, concalls etc… Plus I regularly read the relevant thread on VP and if I find that it would be enlightening to get the view of someone active on the thread, or someone who started the thread, I try to connect with that person. That helps in better understanding of the business.
Besides this, there are of course my charts to fall back on, where often the story is often clearly written. That helps in building additional conviction.
And still if the stock price falls, the first question I ask myself is whether the fall is due to general market weakness or is it company specific reason.
Just to give you recent examples, I had positions in Vimta Labs and RBL Bank. Now Vimta labs also corrected from peak of around 450 to slightly below 300 albeit temporarily. But having listened to the concall and interacting with other friends who tracked the company, I could easily figure out that this was a routine correction in stock price which was more due to the meltdown in overall markets and not too much company specific. So I held on to my position. In case of RBL bank, it gapped down below 100, (well below its all time lows) on news of appointment of new CEO. Now that for me was a company specific news even though overall markets were not so strong. So for me the decision to exit was quite easy. I booked my losses and tried to move on to my next best idea and worked hard on it.
If you have a concentrated portfolio, you cannot afford to make too many mistakes and if a mistake is made, it has to be realised and corrected immediately. Otherwise we can get hurt badly.
@hitusohi1 I don’t track either paradeep phosphate or devyani intl.
@paramjeetsingh I do not track Polymedicure.
@Jasmeet Both auto axles and kkcl are strong charts and seem to be showing good strength in current markets.
@Mandar_Chatufale I don’t track any of the companies you named, viz. divis, pi inds, astral, apl apollo.