@Ghonarbochon @Cshar @Mudit.Kushalvardhan …to get the max ROI and value what is the concetration you look at like idea single stock with all the money or 3 or 5 stock ?
alot of people just make portfolio post in valuepickr but their returns is not even close to a midcap MF so diversifying doesnt help we could have jsut invest in a MF if had to generate 15-20% CAGR
I have put my 80% into mutual funds and 20% into direct stocks. And in direct stocks currently i hold 18 stocks. But top 5 stocks are more than 50%.
As evident from earlier posts , I am all for diversification. If one is to invest significant portion of ones capital and sleep well, one has to be exceptionally strong in guts to invest in 1 , 3 or 5 stocks . I am more of a Lynch follower and not Buffet . Buffet did all the things that he nowadays says not to do in first 20 years of his career .I believe that limiting oneself to index stocks or largely followed stocks is the reason why most portfolios undeperform . Its utterly useless to spend ones own time and energy in direct investing if the returns are 15% . There is also one very good reason why low number of stocks are risky …
Can one invest 30% of ones capital in a stock and be cool if it goes for 20% LC or more or goes for 50% drawdown ? I have seen stocks where I had full confidence go down 50% .
Lots of experience and guts are needed to invest 10% of capital in a stock where very few sees value…but thats what makes the stock cheap and become a multibagger …
I have had about 6 stocks that became 3x to 20x , and similar number of stocks where I booked more than 25% loss . Its great fun to think what if I had invested 100% in that 20 bagger but one must also think what if it went down 50% ?
With diversification , one must ensure that he wins more times and by better margin than the times he loses but loss is inevitable.
@Cshar Thanks for your encouragement . I hope I grow stronger guts and concentrate investments like you do .
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Another quarter has gone and the portfolio is only 7.5% up from June end but probably past 12 months have raised my expectations to a very high plane . However, considering I kept about 10% of portfolio or more , in the sidelines ,and I have mostly small caps ,it’s probably fine. Bought and sold too much and too many times as well , so no point in naming dozens of companies here. However, PGEL has given 2.5x plus returns in 4 months …so booked most of it since I never had deep conviction in it . Booked 40% of Amara Raja to make the rest free of cost , but thinking of booking it once it crosses the 365 days holding period…as I am not to sure of its short and medium term prospects price wise because the EV story is stuttering. Sold of Sona BLW as well at some profit because of same reason .Sudden spikes gave good profits in Sharda motors(40%), Globus spirits and POCL (64%)too .
Sold off Danlaw industries after the bad results as there is too little of info available to keep track and better bets are available.Added Samhi, macpower,EFCIL,AXISCADES, Apollo Microsystems , SG mart etc. in “high risk high reward” section of the portfolio . Bought back Garware high tech films at a 50% higher price from my last selling point (still can be profitable investment), Praj etc.
To balance the risky bets , added some stocks that I consider as good value as of now …let’s see how the next quarter goes .
I do not feel there is much reason to run away and stay at sidelines just now but taking positions based on sector rotation and tailwinds/ headwinds is better idea .
Edit: As I reread the post it seems I have made it look better than it was . I did book 9 losing trades of 5% to 10% and 5 of 10% to 14%. While profit booked was more than 3 times losses, the fact remains most of the profits were made from stocks bought in the previous quarters except Pondy and globus . So…it was a quarter when I made too many trades as things were not moving in right direction soon enough .Time will tell whether I kept the weeds or the flowers .
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which are those stocks which you consider good value?
They are not value investments in true sense but to me it seems they have more probability of going up and more upside than going down and has less downside ( Assuming no complete market meltdown).
- Polyplex @1070
- Nuvama@ 5080
- Quess@710
- Balaji amines@2100
- HLE @ 435
- Bajaj finserv @1833
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Do you have thesis for the stock picks?