IcyHot's portfolio-Down 46%- Corona Impact

Q&A: Questions & Answers Portfolio Q&A
7

Hi IcyHot,

Thanks for your courage to share your holdings and reasons behind it. Your feelings are well articulated. Before I share my feedback let me tell you that my first investment in the market was in year 2004 and I think my experience and hard learnings all through these 16 years in the market qualifies me to share some pointers for you and gullible retail investors. I hope you will get more feedback from some learned members of this forum in times to come.

Common mistakes of Retail investors (you and me included):

** Taking impulsive actions in financial matter by blindly

  1. Following celebrated investors like as you mention Jhunjhuwala, Kedia, Damani et.al
  2. Following finance blogs and website like this, Valueresearch, Equitymaster, Reserach & Ranking, PMS, morningstar blah blah
  3. Tuning to CNBC, ET Now, Zee business, NDTV Profit and its gang
  4. Following Youtube for crash course, discussion, tips, market analysis blah blah
  5. Reading to rating agency Moody, JP Morgan, Care, Crisil blah blah
  6. Believing govt and its regulatory agency SEBI, RBI, FM, NCLT and its gang

** Next thing is analysis of your PF and feedback thereof:

  1. Who makes PF of only Mid and Small cap alone? Do you want to become Tycoon like Buffet or Ambani in short span of 5 to 10 years?
  2. Except DMart (lucky that you got in IPO else had you purchased at high price then again a bad investment), Not a good choice of companies to be in: Lupin, Wonderla, LIC, MPS, TVS Srichakra, Piramal, Ashiana, Kitex, Sonata, Hindutan Media, CCL, Aditya Birla Capital, SP Apparel, Quess corp, Thomas cook, Sintex. Reasons you already described in your remarks.
  3. IMO the worst of stocks being recommended by equity master and i can see you are one of the victims in Lupin, MPS, Sonata, HMV, TVS Srichakra.

** Actions to take:

  1. Never average any one of your holdings mentioned above no matter how screaming the low price is.
  2. Wait for the market to rebound for the next two years and slowly take your money out even at no profit and no loss position. Don’t wait for the minimum gain. Mind it.
  3. Don’t put any fresh money in the stock market either in MF or Stocks for the next 10 years unless you educate yourself by reading at least 50 important books written by Graham, Lynch et. al
  4. Save all your money in Fixed instruments like PPF, EPF, FD etc. (Not in LIC)
  5. Don’t be afraid of forced and false statements like inflation eating your money, 100% invested in equity, don’t time the market etc.
  6. Unsubscribe yourself from all the noise of the market.
  7. Wait for the next market crash that may come in the next 10 years. Till that time keep saving your money and keep reading and gaining knowledge, analyze business
  8. If you can’t wait to be in equity then Start investing the minimum amount in SIP mode in Index Fund that too in Direct Plan.

Do remember that the stock market is a ruthless game for the unprepared and you will be eliminated in no time. Your hard earned money of decades will be vaporised in a one good stroke of the operators within a few days.

I wish you all the best in your investment journey.

Vijay Kiran

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