Equity Portfolio: what I realized over a period of time, have large qtys does help get big returns subject to having quality businesses. After burnt my fingers in other asset-classes, I have pushed my substantial of my savings in Equity. I did quite good number of churning, go fwd churning frequency does reduce by 80-90%.
RE: I think with such a low yield, surronded by frauds & mafia, poor regulatory - this asset class should be avoided. I may get into this asset-class only after 10 years.
Debt/Bonds etc - I have sufficient provident fund, never touched it. I am not interested in other instruments.
Gold/Silver - may be certain percentage but physcial only.
Objective of investing big in Concentrated Equity Portfolio is to transition my self from middle-class to rich.
This is an average portfolio at the best if your intention is captured by above statement.
RIL is 200bn$ m-cap company and it will have nominal GDP + few % point growth. Oil business is sunset business, there is not a lot of topline growth in JIO. Demerger is probably biggest value creation driver. Without that, it is 15% return kind of story from here. This kind of allocation is unwarranted.
HDFC Life is a high quality business but valuations are quite high due to large runway in India. EV will probably grow at 20% for many years. That means, actual stock return would be < 20% due to starting valuations.
HFCL is a poor quality business and has poor promoters. It was a typical bull market stock and returns have been made. I would be looking at different stories if I bought it at 20 Rs.
ValuePickr home page captures really high quality stuff on capital allocation framework and also business quality. Also some great threads where these concepts are put to use. I think you can start by internalising a lot of these as step 1.
Next step would be to find good quality, growing, undervalued businesses which have good management and long runway.
Thank you for your insight.
HFCL - as you rightly said, I am aware of thier past & my 10K qtys bought between 20&30 - I am sitting on 3x, so not worried at this juncture.
The others I refrain to comment, as I dont see any insight there.
Your returns on HFCl is 200% and whatâs your overall return % . I feel a small portion of portfolio could be high return stocks too if @ reasonable valuationsâŚ