Mukesh's Portfolio

Dear Esteemed members,
Before I post my PF I would tell about my tragic journey into stock market first.

I entered in equity market in 2008 when markets around the globe had seen one of the worst downfall and quality stocks were trading at huge
Bargain. After I finished reading of Intelligent investor, what I concurred that stock picking is nothing but just to ensure buying stock of big companies at low price. And as people rightly say, half knowledge is more dangerous than no knowledge!

Because of naivity in stock picking I ended up picking junks like unitech, suzlon, jp power, indage vintners,alok industries, aplab ltd, austral coke etc.
And Rest is a history.
Few good stocks like Apollo tyre, Axis bank, Ranbaxy had also landed in my PF by chance but I sold these off after modest gains again due to my naivity.

In 2011, I decided not to enter market again but something happened in late 2015 and I started searching internet for a concerete way to ensure good stock selection. I finally found the place where I should have been in 2010.

Now I have created a PF after going through numerous threads of this lovely forum. And it has given me a good return of 15% in a year time.
More I learn from this forum more i feel an urge to learn and want this urge to remain alive inside me.

Thanks for sparing time for going through below list

1 Like

I have highly diversified PF of 36 stocks and investing in SIP mode. This is best suited for passive investor as opined by many members.

I posting favorite 20 stocks.Rest i will share in next post.Kindly give your opinion on merits and demerits of PF.

J & K BANK4%

What happened to this? Why don’t you stay with this strategy and as you gain more knowledge and confidence, move down the size scale? Large companies are large for a reason. It’s because they have a proven business model and strong management.

It’s fashionable here (on the VP forum) to buy small and mid size companies. But I think 70% of large companies are good businesses while only 10% of small and mid size companies are good businesses.
You can easily generate 15-20% returns just buying 15-20 stocks from top 100 companies. buying too many companies is a sign of lack of confidence not a desire for diversification. Diversification benefits goes down dramatically after 10 stocks and negligible after 20 stocks.

Thanks for.initiating the discussion Mr Yogesh

IMHO concentrated PF is for ace investors and regular investor is better off with diversified PF but yes PF should be consisting 20 stocks at most. Need assistance in pruning the PF.

Coming to point of investing in stocks of large companies. Quality stocks may not perform because of overstreched valuations. Few going through bad patch like nestle, Hawkins, GMDC, EXIDE are available at relatively better valuations and i am invested in these stocks.

Rationale behind investing in the companies mentioned above.
I like the idea of cloning. Though only after doing my own due dilligence I do allocate the capital.
NESTLE - Megh Manseta stock.
I Invested when price corrected sharply after maggie ban. How this 150 year old global giant handled the situation is quite commendable. Nestle first came out clean of all the charges and then launched array of 20~25 products to counter the intensifying competition. Now Maggie has regained its leadership. This also proved that Patanjali noddles or any other noddles for that matter can’t dent into the market share of maggie.

India cement- Mr R.K Damani stock
Invested as proxy to realty/infra. its a pre -independence day company with pan india presence. Projects launched by NaMo like smart cities project, affordable housing etc will benefit the cement companies like india cement

Exide- I bought with simple logic that market wudnt keep on punishing it for a tactical errror made by its management 5-6 years back. All quality stocks have turned into multibagger then why exide can’t.
It’s only matter of time before euphoria around Amararaja counter will subside and exide will get is due attention.