Dear Hiteshji,
Thanks for indepth explanation .Appreciate your thoughts.
Do you look for business momentum for next 2-3 years perspective or a long term perspective of more than 10 years?
Regarding a low risk strategy what you have in mind is perfect for someone who doesnt have the time or patience to learn the details of investing. Index investing has low impact costs and if one has the mental mindset to keep averaging on the way down, thats the way to go.
Having said that, I think since you have been on this forum, it would be a good idea to take a leap forward and try to learn the ropes. I myself came from a non investing background and read my first investing book in 2008 at the age of 41. But after reading One up On wall street, I took up investing like fish to water. So if you can read a couple of books just to find out whether the investing bug excites you, it would be a good idea. And with a sideways/ down trending market there could be plenty of time to learn and observe and practice what you learn.
Once you get the hang of basics of investing it will be your passion that will drive you further. What I have seen in most people is that even if they have enough knowledge about the field they cannot take it to the next level because of lack of interest or conviction or half hearted efforts.
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Thank you Hiteshji. So far Iāve come to the conclusion that its best to take care of oneās investments oneself, learn, make mistakes and hopefully get better with time. Considering the rate at which Iām learning new things on Value Pikr, Iām pretty confident of reaching my goals far sooner than expected.
My learnings & strategies so far
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Iāve decided to go it alone instead of Active Fund Management i.e MF/PMS. Passive Investing via Index Funds is for safety and shouldnāt cross 40-50% of the total portfolio
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ILFS was a big black swan moment for me and I lost close to 8% in Tata Money Market. Hopefully this should recover over time. So Iām reworking my debt investment strategy and reorienting towards FDās. Also learning & investing in Gov Bonds/Short Term Gsecs etc directly instead of via the debt MF route.
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For stock ideas Iām relying largely on Valuepikr as well as some paid advice.
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Hopefully this will all be part of my overall Financial Goal Planning & Wealth Creation Strategy. Iām still working on giving final touches to this overall strategy based on risk/reward, time invested vs. return i.e passive/active etc.
Will begin reading the Peter Lynch book you have talked about. This I guess has been missing so far.
Since you have been pretty generous with your advice and your time Hiteshji I decided, the least I could do is to give you an idea of how I intend to follow-up on it and make good use of an exceptionally high-quality, free and opensource forum like Value Pikr instead of taking things for granted.
Thank you once again for inspiring me, Hiteshji.
Hoping to learn much more from you and on Value Pikr!
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indeed it has thrown impressive names.
Dear Hitesh Sir,
Thanks from the bottom of heart for being honest and helping people in their journey of financial independence.Kudos and Keep it up.
I too have a dream of being financially independent and building my portfolio which can give me 15 to 18% CAGR till 2021( almost 3 yrs from now). If I am able to do so, then I can look for some other aspects of life and career.
With an objective of returns mentioned above, here is my portfolio, with % allocation.I have invested a good amount in the recent drawdown of sept/october and thus average buy of most of the scripts is quite fair.
Request your review and guidance. I will be grateful:
S.No. Stock % Allocation
- Asian Paints 3%
- DMART 3%
- Bajaj Auto 4.5%
- Baja finserv 4%
- Britannia 3.5%
- Everest ind 5%
- Finolex cables 2%
- Graphite India+ HEG: 5%
- HDFC 4%
- HDFC Bank 6%
- HDFC AMC 5.5%
- HDFC Life 4%
- Tata Elxsi 2%
- Jamna auto 3%
- Jubilant foodworks 3%
- L&T Finance holding 3%
- Maruti Suzuki 8%
- Thyrocare 2.5%
- Sun Pharma 2.5%
- Page Industries 4%
- Piramal Enterprises 4%
- Pidilite Industries 4%
- Radico Khaitan 2%
- Reliance Industries 3%
- RBL Bank 4%
- CDSL 2%
- Dalmia Bharat 2%
- Blue Star 3%
Also request other senior investor tribe members to provide your valuable feedback.
Keenly awaiting your feedback
Regards
Abhishek Jain
3 Likes
Thatās great list of stocks. A bit too many to track but peter lynch used to invest in a lot of stocks. Over hundred in the first year of his managing funds.
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If I am looking at investing from a 5-10 year perspective, does it make sense to invest now or wait for correction as the election nears
You can please start the discussion on your portfolio in your individual portfolio thread which would enable you to get feedback and focussed discussion on your stocks from a wider group of investors.
And in the list please put up your logic for investing in the companies you have high allocations to.
We will take up the discussion forward there and I will contribute my views there.
rgds
hitesh.
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For anyone investing for any time frame, the price which is paid to buy a company assumes a lot of importance. e.g If in a company X currently quotes at rs 100 and in 5 years doubles to 200 you get roughly 12% cagr returns.
If same company is bought at Rs 50 (its a hypothetical situation) and you get same price of 200 in 5 years, you make a 4 bagger.
Thats what accelerates compounding and hides some mistakes one is bound to make in some of other part of portfolio.
This thought process of investing for next 5-10-15 years gets severely tested when stock prices go down 30- 50-70% from the buy price. Very few people have the mental fortitude to keep holding on to the stocks in portfolio in the face of such severe dents. Its very easy to take a call for next 5-10 years and extremely difficult to hold on to the stock even for next 5-10 months if prices move severely against you.
And sometimes even if the price moves up much faster than you anticipate. 
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Hi Sir, Does that mean, averaging down is good to reduce avg buy price and hold for long term for better cagr returns. Assuming its a reasonably good stock. I recently made a portfolio of 10 stocks, however I anticipate few stocks in my portfolio to go down by 10% to 20%. Should I double my allocation to lower buy price. Or wait & watchā¦kindly share your experience in averaging down.
e.g. Yes bank, Avanti feeds in my portfolio.
thanks Hitesh sir
Have posted my portfolio in an individual thread: " abhiās portfolio"
Please provide your feedback
Hello Hitesh sir,
Could you please let me know your view on V2 Retail as it is in consumption sector and itās in Tier 3/4 cities. Q3 results was disappointing even though festival were moved to Q3 and per management SSG will be 0% in near future due to intensive competition. To me it looks like that Rural consumption is not picking up as it should have negated some competition.
Thanks
Krishna
Hitesh bhai,
Would like to know your views on Talwalkar duos after demerger. Even as a combined entity also the erstwhile Talwalkar Better Value Fitness was doing reasonably well and was perhaps the only listed company from its sector.
Now as the separate entity, though the fitness business (Talwalkar Lifestyle) is still growing reasonably well it is quoting at ridiculously low levels by any standard. Quite intriguing or may be market is knowing something that we the retail investors are not aware of !! Lifestyle business (TBVFL) is also growing nicely with good future plans (Pl. see Q1 and Q2 results) and a south based prominent investor has already taken the entry.
Another such irrational pricing seems to be for Take Solutions (Pl. see Q1 and Q2 results) also. I am not able to find the negatives for such low valuations of these stocks particularly Talwalkar lifestyle & Take Solutions.
I am not sure whether u r tracking these stocks, but seek your views about their investment worthiness at presently prevailing prices.
Thanks & regards
I would add my 2 cents if you dont mind.
I was invested into this company earlier (just before demerger) and invested a good chunk on the day of demerger; they played with the retail investors by not properly announcing the demerger dates and secondly, created confusion with the names of the 2 entities ( i am still confused with the name swapping funda);
Needless to say this is a typical case of mgmt misleading investors; you can find multiple threads if you google on demerger thing. Read articles from CNBC and capitalmind.in
Perhaps it is because of this reason that the stock is available cheap due to questionable mgmt.
I may be biased because I lost a lot of money in this.But these are my views.
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I havent tracked Talwalkar since a long time. As a concept stock it was looking a great idea but it didnt deliver too well on investor expectations.
And as mentioned by @abhijain the antics of management dont seem too well.
I think since this correction has and will throw up much better opportunities it might be prudent to focus on better quality businesses and better quality managements.
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Please go thru this
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@Hitesh ji, is it a good time to enter LT foods which is available at a P/E of 8?
http://ws.karvyonline.com/viewdocument.aspx?DocumentID=22734
LT foods has been a laggard in terms of posting good growth. If you look at quarterly net profit numbers since Dec 2016 which is by now 8 quarters, net profit has remained in the range of 33-40 crores with minor variations during quarters. While topline has grown at a steady rate, it is not reflecting into concurrent growth in net profits. For any business to create value, there has to be growth and it has to be profitable.
Maximum money is made when there is strong sales growth with even stronger margin improvement. This is usually the underlying theme for most multibaggers. The more enduring multibaggers continue this phenomenon for long periods of time whereas the cyclicals or cyclical companies which are every now and then confused with long term wealth creators tend to show this phenomenon for short periods of time and stocks go up 2x-4x or even 10x in a short duration of time say 2-5 years and then growth falters and stock prices crash more than 50% from top.
Once these types of crashes occur it takes a long long time for the stock to make a comeback. In between there could be rallies of 30-50% or even more but these would not immediately go on to regain their lost glory.
One of the most important lessons in investing I think is to learn how to differentiate genuine long term buy and hold companies from the cyclicals and mediocre companies having a good time.
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This is a killer statementā¦ You nailed it sir.
I think kitex, mayur, avanti etc would be such examples from past and may be heg, graphite and some speciality chem co at present.
Having said that, make hay till the sun shines is also very much applicableā¦
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Doctor,
Would you please guide us which are your 1 or 2 picks in specialty chemicals segment?
I am a novice to understand the businesses since there are multiple sub categoriesā¦have gone thru Valuepickr PPT on chemicals space, found aarti industries exciting but its too high valuation.
Please advise with your picks