Mag Log term portfolio - views please

Q&A: Questions & Answers Portfolio Q&A
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I have recently joined valuepickr and now following regularly. I am investing in equity through mutual fund since last 5-6 years and now want to build my direct equity portfolio.Since i am not from finance background , I started learning about business and reading balance sheet but still at basic level and long way to go.
I started picking stocks from sept 2020 for building portfolio and tried to stick with well known market leader in respective sector and avoid searching for multibagger small/micro caps as already lost some money in that adventure.Below is my portfolio & rational behind selecting stocks —

1)hdfc bank – leading private sector bank from hdfc group

2)hdfc life – leading private sector insurance player feel insurance sector will grow in coming years with increasing awareness about insurance

3)hul - fmcg mkt leader and good performer

4)tata consumer – transition from beverage to fmcg player expecting high growth in future

5)Pidilite - market leader in adhesive industry , coffee can inspired

6)Asian paint - market leader in paint industry , coffee can inspired

7)Navin flourine - leader in flourine industry

8)Pi industry - consistent performer in agro chem industry

9)reliance – bet on its telecom & retail business

10)syngene - pharma crams player from biocon promoter

11)laurus lab - expecting high growth due to its capacity expansion and following everyone’s conviction on promotor , bit hesitate to add earlier due to low promoter holding and pledge shares

12)polymed - medical equipment manufacturer and decent performer, not able to find any other listed player

13)Alkyl amines – amine industry leader

14)deepak nitrite - specility chemical leader

15)tcs - indian it industry leader

16)ltts / tata elsxi – engineering r&d play , bit confuse in slection but feel ltts will be better play due to there known expertise in engineering

Tracking:
Astral poly – pipe induandustry leader
Supreme industry – plastic industry player
Dr lal path – leading pathology & diagnostic player
route , indiamart , naukri , affle, dixon , happiest mind - Already run a lot all these

I tried to avoid cyclic industry like infra/reality/auto & psu while selecting.
Not taking concentrated portfolio approach (only 10-12 stocks) and will invest equally on all stocks. Expecting ~15% cagr

I am doing monthly sip in mutual fund to keep investment going and avoid market timing.Current core mutual fund portfolio consist (largecap ~ 35% , midcap ~ 40% , international ~ 25%).
I am maintaining asset allocation debt:equity as 50:50 .Debt with PPF/EPF/NPS.Keeping sufficient emergency fund.

I am struggling to find price for entry in selected stock as i am following 5yr/10yr pe ratio as benchmark to check valuation.I am buying stocks in small qty near 50/100/200 dma or when ever there is correction in market.But still not able to get strategy for buying.

Please provide your valuable suggestions

5 Likes
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Good portfolio for long term covers all sectors with growth prospects
All the best

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@Mangesh very well curated portfolio, mix of stalwarts and high growth cos. The watchlist has names which are presently very expensive. Some sharp corrections may offer good entry points.

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@Compounder & @Aniesh7 Thanks.
Is buying by comparing 5yr avg and near major support is ok or do i need to add more filters to find buying opportunities. These stocks are trading at high pe , peg and multiple times pb value.
I m still learning on valuation part .

Any view choosing between ltts and tata elsxi.

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Ltts seems better bet. Tata elsxi major revenue depends on JLR.

I buy stocks wen market fall, I understand timing the market is is not easy. But I’ve seen atleast in every 2 months there comes 3-4 days where market remains weak . That’s where I find opportunities…has to keep patience n wait
N secondarily few stocks falls due to some negative news stock is down 10-12% that time i buy .

Stocks which is on your watchlist is commanding high valuations. 10-15% dow from here can b a good entry point
That too if yur outlook is atleast 5 years

Not invested in LTTS , or Elxsi

Deepak nitrate, Amber , DR lal , Muthoot, relaxo Varun ,Crompton, havells are some of quality midcap u can keep an eye on

Except havells hold all

1 Like
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@Aniesh7
Will add suggested stocks too in watchlist.i m looking to hold portfolio beyond 5yrs unless something goes wrong with any stock.
I already did multiple entry exit in hdfclife and tata consumer and missed on rally. So now not selling these kind of stock in hurry.
For Midcap small cap exposure i m still preferring mutual fund route.

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Great

All that’s required is the passage of time, an inner calm,” - Warren Buffett’s

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Hi, I consider myself a novice and still learning the art. Having said so, there is no golden formula. Some of these indicators are helpful. Markets love growth and don’t mind paying a premium. I think broadly you need to assess the opportunity size available, runway ahead, management quality (more so in tech space) and then pay a reasonable price and also look at margin of safety. I dont have an opinion on these 2 cos, but I do have TCS in my PF. At present levels of 50K index you would find most stocks way above these selection filters. Add them to your watchlist and go hard at them as and when there is a deep correction.

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Most of the stocks of ur PF is matching with mine…I think it is a good one to generate consistent money over long term and also beat the benchmark nifty…you can also refer to my PF

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@Jaisish_Mohanty
Saw your portfolio, almost similar except it sector.
Are you following equal weightage and whats buying strategy.i m seeing churning in u r portfolio though most holdings are fixed.

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Actually its not exactly equal wtage…Im invested more in Chemicals (20%), Industrials (18%) ad Financials (15%)…rest others are smaller portions.
Actually my PF is mix of long term and some momentum stocks…the momentum stocks keep changing, though core remains the same…
From now onwards I am posting only my core stocks and not the momentum ones, so the small churning which you had seen might not be there going forward

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@Jaisish_Mohanty
How u are deciding your buying time for stock in your core portfolio.are you buying monthly or only on major correction.

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Actually I had taken money out during start of covid from my MFs and once market bottomed out I put that money in lump-sum to build my PF…currently I am fully invested and only small amounts I add when a stock corrects 10% or so

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I am not an expert neither sebi registered, I liked the PF, Really good mix for Long Term investing. I’d not look at PE for long term investment and keep investing monthly.

I’d also look at riding the tailwinds on EV and Auto sector for mid term.

I’d also look at adding a few platform businesses.

I’d enter Elxsi rather than TCS as the younger bro will get to piggy back on elder bros network with its unique offerings especially with tailwinds in those sections.

All the best! God Bless!

15

@YuvarajPatel
I am too thinking on keeping investing monthly.
Too many option for ev theme play .i exited tata motor too early big mistake.made same mistake with tata chem .Will think of entering again in correction.i feel there is a long way for ev theme to grow in india. adoption of ev will take time in india.
I already took small position in tata elsxi and ltts instead of tcs for playing ai/automation/iot theme.still will add tcs as its market leader in india.
Platform business already run a alot.waiting for some correction.already in my watchlist.
Your feedbacks are welcome.

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@Aniesh7
Tata motor was my first choice as i feel they were little ahead compare to other competitors.but there low market share in india geographical spread high debt were problems.but looking at n chandra , i m getting confidence on tata grp companies.
Very valid point on battery business benefits .

I intentionally not included auto due to cyclical nature and too much competition. I included companies in pf which need less tracking .

Are you tracking tata power , green energy also looks promising theme looking at increasing awareness abt environmental issue.

I have small position in tata power.