Mightymedico portfolio-Oct 2017

Thank you for instilling confidence in me. I cannot afford to spend much time researching about how stock market works, hence I rely on trusted sources for their picks and of course I validate them by checking the fundamentals and financials to the extent I understand so far. I definitely understand now that this is not the ideal way to invest.

I am looking at ways as to how can I amend my mistakes (Fiberweb especially) and then move to more mature way of picking stocks. I am still in dilemma whether I should exit this stock or wait too Q2 results. This decision alone is the source of my stress lately as this scrips constitutes lion share of my portfolio. I would be really grateful if any veteran can guide me here whether to exit immediately and book 20% loss or wait till Q2 results are out.

Fiberweb is quiet week on charts, ferocious rise in last 1 year, better to book loss & see results & decide to enter again or not. Analysis of business model is very crucial before making entry again.

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Hi Vinod,

Good to see you investing in the equity market. Stock market is cyclical in nature, you will see bull market and bear market. While everything looks tempting in the bull market, its the bear market which shows the true picture of how well one can handle equity investment. Stocks fall down by 30-50% depending on what you have invested in and then normally take 1-2 years to rise back slowly.

I try and follow few simple rules -

  1. Category investing (Invest at least 15-25% in large caps (market leaders) , so downside risk is always protected in bear phase)

  2. Try to never invest more than 10% in any stock no matter how bullish I am. Never over expose to any sector beyond 20-25%.

  3. In bull market, I always try to keep 20% in cash so that i can take advantage of the market falls.

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Hi Vinod
I am also a newbie but this forum has helped me a lot

I started with a very risky portfolio in hope of hitting six on every ball but soon realised my mistake

With ur profession where long term earning visibility is very good ,u could afford to a invest a portion of portfolio in high risk

But I agree that not losing money must be the first goal

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Fully agree with you. I invest only in ELSS funds with dividend payout option these days to save Income Tax. Redeem exactly after 3 years. Earlier I used to invest in HDFC Taxsaver, but switched to Birla Sunlife and Franklin templeton.

Compare to many folks here even I’m very me to investing.
Based on that what I would say is don’t blindly trust anyone.
Take all recommendation with a pinch of salt and kindly do your research.
It’s very time consuming but that’s the only way you can feel safe.
There are a lot of articles in this forum describing a lot of aspects of investing, kindly go through that and take informed decision.

As for your portfolio,I too agree that from a long term perspective the stocks are highly unpredictable.

As an egg, try to invest in companies which sell products you can see in the market.
Eg: cookers,cars,shoes,apparel so on.
That way you will start having some idea about understanding the fundamentals.
This is key for long term