Investing Basics - Feel free to ask the most basic questions

Ok. Also these returns must be from start ( from inception) , then u have any idea how to calculate 1 year, 2 year, 3 year, 5 year XIRR returns from these individual stock XIRR?

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I think for that you will need an excel or some web-based calculator :slight_smile:
But any reason why do you want to calculate that?

Try value research or mprofit.

Mprofit will automatically sync all your trades directly from ZERODHA without any manual intervention. Though the free version will have a limit of portfolio value till 50 lacs.

To understand how is my performance during these years, 1 yr, 3 yr, 5 yr etc. From inception will give me returns from start, and it may not reflect recent performance properly and will be biased, if my old time picks have been better but current picks are not so good. And measurement is the only quantitative factor which will tell me if I am doing good or bad. Gaining knowledge in the process is qualitative factor.

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Value research not able to properly incorporate my trade files. I tried and not good with it. Mprofit is good, but it is free till 50 lakhs, and i dont want to pay seperately just to measure my performance

Ah ok. Got it. I don’t think Zerodha will be able to do that. However, every year on a fixed date, you can maintain a spreadsheet in which you can get the XIRRs from Zerodha.

Yes. That needs to be maintained. But again individual stock XIRR will not be from one point to another point. It will always be from start point. So when i look at individual XIRR, it will be from lets say starting 1st january 2015 till today. It will never be from 1st january 2023 till today.

Any opinion on the setup of the below price chart?

  • Weekly Chart
  • Thinner Blue Line: 40WEMA
  • Thicker Blue Line: 40MEMA, and
  • Horizontal Dotted Line: CMP

You could have made the job easier by providing the stock name. While I think I can guess the probable reasons for not doing so, and while I also consider this as a learning exercise, there is also the possibility that I could have given up, if I could not have found the stock sooner.

Is this Vmart?

If it is, it appears to me, it had created a H&S pattern from 2021 January to 2023 March and had broken the neckline of 2460 or so, which also appears as a support, and went down further and took support at 2050 or so, and went down even further to the lows of 1595, a low which was last seen in 2020 May. It was trading in a range of 2460-2050 from March to September.

CMP appears to be a a support level, or it may fall further to 1390, another support level, a level which was last seen in 2020 March. Appears to be a in downward channel too, not sure.

As the price is 65% distant from ATH, I guess it is not a bad idea to wait to see if it goes back to 2050, or this could be the bottom for the current situation, as it appears volumes have been picking up along with some movement in the price. RSI on monthly chart is the lowest ever.

I don’t follow the business, and my observations could be completely wrong, so take them for what they are worth, and no position.

Hi Mudit
I’ve followed the method used by Sahil Sharma for XIRR calcualation. I have a question though.
In zerodha I can only see my portofolio curve for only past 1 year. So, I’m able to calculate my XIRR only for past 1 year or any shorter period. Is there a way to find the Portfolio value in the past like 3 years ago or 2.4 years ago ?
Thanks
Praveen

From console, you can put exact date and get account value on that particular date.

One thing i realised while calculating XIRR of total portfolio using weighted average method of individual stocks XIRR given by zerodha…is they obviously dont give XIRR of those stocks which we have completely sold and currently not part of the portfolio. So an investor have sold many stocks in past, which doesnot form the part of his portfolio currently, then his XIRR of portfolio will be wrong.

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I have one querry.

First , something about my strategy:

1…I am long term investor with vision of 5-10-15 yrs investment horrizon.
I had sold <5% stocks in last 6 yrs.

2…I usually prefer small cap (1000-5000 cr mcap) companies having 15-30 P/E ratio.
Not more than 35

3…I believe in concentrated portfolio of 10-25 stocks depending on size of portfolio.

4…I have regular cash inflow every week for fresh investment in market

=I have invested regularly on weekly basis through out from sept 2017- nov 2023 .

5…Since last 1- 2 years, i have invested in my own stocks to make portfolio concentrated.(I have invested in my own stocks even they were doubled or tripled)

Now , coming to the problem.

A…I want to invest fresh capital regularly for next 5yrs in stock market

B…As i invest for long term(5-10 yrs) , I dont want to switch over to other stocks.

C…At present, many stocks i own, have been re rated and are available at highr P/E and higher mcap .

So, how can i invest fresh capital in next 5 yrs and still make concentrated portfolio ?

What other long term investors with concentrated portfolio do?

How legends like warren buffet, philip fisher make concentrated portfolio?As they are very long term investors and they invest in 25-30 companies.
Whether they buy their own stocks after 3-5-7 yrs? Or they switch over to other companies?

What these legends advise to retail investors for how to invest fresh capital and maintaine concentrated portfolio?

Please share your strategy.
Thanks.

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Doctor, I don’t know much about Fisher, but Buffett is not an investor, he is a businessman, an entrepreneur. He buys an entire company or buys a stake in a company, which essentially makes him an owner of that company, to the extent of his stake. I am not sure if you are aware of this, but in his journey of decades, there were instances where he bought a stake in a company and sold it quickly. Not all of his purchases were long term, even his holding period is not forever for all of his purchases.

As expressed by Dr. Hitesh to a medical student in his thread, for someone who can understand the complexities of human body, investing is very easy. So if you think your current positions are big, and if you think that they will grow more with price appreciation, so you don’t want to add more capital to them, may be you can think of new sectors, sectors which are polar opposite to your current holdings, there by having the assurance of zero overlap, and with time, you can have big holdings in these sectors too. You can follow a top down approach, or look at sunrise sectors, or even identify trends and can be a early investor in such companies. Many ways to explore and expand into new territories. Or if you think your holdings are big but are not too big to handle, and as you follow the businesses, adding more can happen. And you can weigh each such holding to your equity allocation, your net worth and see the relative effect it can have if more capital is added.

And then there is the evolution of Dr. Hitesh, not just for investors like us, but for you doctors too. May be some elements of his approach might resonate with you.

I am saying this only because finance pales in comparison with your wonderful profession, and as such, even I can say something.

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Basically you are asking is :

  1. some of your positions have become quite big, and the way market is all time high, what to do about them, whether to sell them partially or bring in line with other positions or keep it untouched

  2. you want to know what other investors do in this situation…whether they come in cash and sell the positions till the market comes to normal level or they keep holding all positions, irrespective of market levels?

You need to have buy and sell strategy of your own based on your risk appetite.

If you are afraid to invest more at high valuation in your stocks, then existing holding also at risk of losing their current value. Why are you not exiting and moving to other undervalued stocks?
If you are sure current holding yield better returns then should not have doubts in adding more.
Think about it.

Typically fund managers rebalance their holding with in portfolio based on valution and future growth.
Example if have chemical stocks or IT stocks which are facing headwinds now, add more there as they will recovery later.

I have also same question?
If SSL business is genuine then It can perform well in future.
I checked in Linked in all the employees are from SSI(Sigmal solve Inc).
Is there any chances that in future there might be any conflict between SSL and SSI ?

can production numbers be higher then capacity? if yes then how

Anyone has a good Excel template or online method to track stock purchases and portfolio - mainly taking care staggered purchase and of splits and bonuses?

Thanks