Aptech Ltd - It is an IT/Edu company. It has currently no debt and dividend yield is also decent. I got to enter at a good price.
Ashiana Housing - It is expected to grow as for the new housing reforms it is expected to give good results next quarter. The company has low ROE but in the long run, say 2-3 years I’m expecting 15-20% CAGR.
KTK Bank - It has liabilities of around 7k Cr. Its book value is still higher than the CMP.
Maithan Alloys - I found this stock very attractive. I believe that I’ve got to know about this stock very late, but still, the company is expected to give good returns next quarter as it has been giving since past few quarters. It’s because of the current global spike in manganese ore prices and increased demand in China. (I bought this stock just two days ago.)
SBI - I bought SBI without any research. It was my first stock. I bought it three years ago. Still holding with regret.
ICICI Bank - same case as SBI.
JSW Steel - Entered for short term period on just technical analysis. Will book profits in a week or so.
RBL - I’m holding RBL as well. It isn’t in the above image. I entered this stock at Rs 371/- because of good fundamentals. Looking for long term returns.
I’m into MFs as well.
Franklin India Smaller Companies Fund Growth
ICICI Prudential Focused Bluechip
I’m new to VP. I’d love to get your views and suggestions to improve and diversify my portfolio. I’m still learning stock market. I’m no expert. Still a newbie.
Except for Maithan Alloys, everything is a sell. Take the money and run to invest the proceeds in MF like Franklin India Smaller Companies Fund, DSP BlackRock Micro Cap Fund - Regular Plan, Edelweiss Mid and Small Cap Fund - Regular Plan, DSP BlackRock Small and Mid Cap Fund - Regular Plan, Axis Midcap Fund, Franklin India High Growth Companies Fund etc. To build stock portfolio better to have only one bank(preferably a small private bank) and one housing finance company(preferably small one). Start by investing in consumer companies, Automobiles and Auto parts, food companies, FMCG, etc and study indepth, before investing in other areas. You are entering market in a bull run otherwise your portfolio would be 30 to 50 % down.
This statement sums up your present situation. It reminds me of my investment journey couple of years back. With great difficulty and collateral damage, I am out of that rut now. Shaswat, this is a journey where we pass through valleys and hills. Never lose sight of the goal that you set. The stocks that you use are important but not sacrosanct. When you fall you pick up yourself pay the tuition fees and go forward. Every market correction and result season are an opportunity for us to reassess, critically look at our portfolio/ initial buy reasons/target set and if not going according to your plan be ruthless in taking a call to exit. In the recent past, I have exited about 3 or 4 scripts based on my assessment and consensus in this forum(they are all good long term stories with decent past record). My plan need not/should not be your plan of action. You will if you spend enough time in the market ultimately by default will evolve your own style. That is what will work for you! This is my humble opinion!
@Sajijohn When I bought SBI and ICICI in 2014 I was underage and I didn’t have a Demat account. I used to buy stocks with my brother who’s 8 years elder than me. So whatever he used to suggest I used to buy from his Demat account. During those days I didn’t have a clue about anything. Later, I read few books and got to know.
I thought to exit SBI and icici many times but I didn’t as the amount invested isn’t too big in it. I started in depth researching stocks just 6 months back and currently I’m finding “growing” companies in the sectors which I completely understand.
I’ve felt the same as you said. The long term good stock in my portfolio are none expect for Maithan Alloys. Rest are just for very short term.
I bought Aptech because I understand the site metrics like sessions, bounce rate, traffic, pageviews and many more. You can even evaluate the conversion rate of the site and to me Aptech’s conversion rate is increasing with their unique marketing strategies. Still the numbers aren’t good in balance sheet but currently I believe it’s in growing phase.
I started stock in depth researching just 6 months back so I’m very new to it. I know I’ll make many mistakes but hopefully and eventually I’ll get on the right path.
I’m doing mutual funds since a year now. It has given pretty decent returns.
I’ll take your advice and will diversify the sectors in my portfolio and exit non performing companies.
I’m currently in my 2nd year of engineering. I started when I was in 12th std.
Shaswat, You are too young to be in markets. I don’t know from where you got the money. Probably born with the silver spoon. The main problem is not monetary loss, but like girls, Markets will divert your attention from studies and seduce you to become full time market participant, please keep this in mind. It is better you concentrate on studies more and exit the market fully, in fact forget the mutual funds also. Invest in Bank FD, 50% of portfolio and keep the other 50% in MF. Get a degree first and then if needed get a job, else if you have lots of money already, then before entering markets, read books like “One Up On Wall Street” by Peter Lynch, “Beating the Street” by Peter Lynch , “The Thoughtful Investor” by Basant Maheshwari etc(Warren buffet letters, Benjamin Graham etc will be heavy dose but do read Warren Buffet, Phil Fisher) and then enter the markets. I know a lot of great investors started investing early like you during school/college days itself(Warren Buffett, Ian Cassel, Geoff Gannon etc) but even greater number of people, might have started young and exited markets fully. To create a portfolio financials(Banks,Mortgage Cos, Stock Brokers etc) should not take more than 20 % of your portfolio.(For RBL bank, which sounds exciting, read the entire thread(99 posts) here in Valuepickr, same with Maithon Alloys) rest of your stocks just close the eyes and sell at market rates tommorrow itself. Invest that money in Bank FD’s. I know you don’t want to hear this, but that is the fact you will realize sooner or later.
I know I’m young for entering the stock markets, but I feel like if I start making investments from now then by the time when I’m in my 30’s I’ll be having a decent portfolio. As I said, I started researching just six months back, before then I used to invest on tips (which I know is very dangerous), but I was a noob. I’m making money currently from blogging / digital marketing (affiliate and Adsense) and the money which I’m making I’m investing in stock market and MFs, so I’m investing the money which I’ve earned by myself. I started with very small. I recently started taking free online CFA courses for level 1 to learn more about this field. I’m thinking to give CFA exam once I complete my engineering.
I recently read both the books by Peter Lynch “One up on wall street” & “Beating the street” both books are excellent. Now one of my friends suggested me to read “The Intelligent Investor” By Benjamin Graham, so I’m gonna start reading that book soon.
I respect your advice, but I guess I won’t be opting out entirely from the stock market. I might end up losing money but will learn as well. For backup, I’ve invested the money in real estate and FDs as well.
And like you’ve said I shouldn’t keep more than 20% of my portfolio into bank and mortgages sector, I feel the same. I’ll be exiting soon.
Thank you for your precious reply
I would say stay in the market, but with very limited funds to read its movements, how it is affected by sentiments and to go through a bull and bear phase just for the sake of it. Everyone need their 10 odd years in the market before one can call themselves at least an intermediate. So earlier you start the better. Don’t put all your money in stock. Save money, wait till you are thirty and then put a substantial amount once you get the conviction. Conviction for me is it should not bother you if you loose 50% of the portfolio in the next few months and panic sell. If you can wait till the next beat phase, the better
Welcome to the equity market, the earlier you start the better. I started investing when I was 20, almost 15 years back. Seen few ups and down but never lost my sleep over it. That’s the most important part which most people forgot in the greed of multiplying money.
Always invest with a minimum 3-5 years views, as stock market is risky only invest the amount which you can afford to lose. Try to add in SIP, I normally try to average on the way down (15-20%). To spread the risk, never allocate more than 10% in any stock and more than 25% in any sector.
Commenting on your portfolio, I am super bullish on RBL Bank and believe it will outperform most banks on return at least for the next 3 years. Most of your portfolio, is financial and metal. Try to spread the risk among other sectors as well.
Pharma Sector, Infra Sector, Defense plays looks very interesting if you believe India will be in a better position 5 years from now.
I am very bullish on Aurobindo Pharma, REC, L&T, JKumar Infra, Bharat Forge, HCL Tech for someone to start portfolio on. I believe with time, they will only see new highs.
This is one of best investing profile I have come across for a while. A big congratulations Shaswat.
I won’t give you any advice for now, I will share something with you. I started when I was 14 years old, never looked at anything else, quit my job last year, born to a middle class family with super talented academician sibling, taunted in every family function as the guy who never studies, even a profession like CA was below mediocre for my father, when I get married my wife came with a academic super motor head, my wife gets confused what I do or what I want to achieve. 26 plus years has gone since I started. My father appreciates me why my power of compounding is powerful than his books( he understands mathematics far better than me, has a doctorate in maths!), my brother dials up from US where to invest (his Mckinsey skills don’t tell otherwise), my wife has given up on me but still see me laughing since marriage , friends (most of them are nice) sometimes cautions/criticise but remain well wisher.
Life may be many circles, I do not have confusion which circle want to be. Same case with you, move on; success is ringing bell at your door. Forget money, you will enjoy your entire life with what you are doing if you are passionate at.
In fact I need to learn from you as to how to use your motivation for me and my daughter who happens to be 10 year old. By 12 I wish she turned to an investor, can’t force it. But will do everything under the sun to make it a success for her!
Tonnes of luck, really adore your profile
Sir you are a inspiration to many guys like me who want to start and make a difference in life, I am reading all your posts…please keep encouraging us…hats off to u sir…
Hey Shaswat, according to me, mindset of starting investing early in life is a gift directly from god. I am 34 and started investing one year back and I always felt I should have started atleast when I was 20. so you just keep going.
My simple advise is, you need to spend more time in learning and reading books. And use the lessons from book to analyse your stocks. Simply reading books is waste of time, once you a complete a book you use those lessons to identify stocks through screener.in. it will help you deepen you lessons practically.
Spend more time on reading books on how to analyse stocks rather than behavioural economics or general gyans. Most of the books reiterate the same thing in different package. I can suggest the fives rules of successful stock Investing from pat Dorsey, Michael mouboussin articles, competitive advantage by Michael porter and financial statement analysis book.
Once you are clear on analysing a company and industry. Then read more about portfolio construction and behaviour finance.
Don’t borrow conviction, invest for long term, analyse competitors before investing. Don’t invest in impulse. Go slow and steady…there is no hurry to catch up…
Good to know you find them useful. There are so many experienced, motivated people on this and many other network. We will throw noise (fluffs, irrelevant subjects some time) with signal (relevant stuffs). You please continue to separate signal with noise. Without my signal or noise you continue to march, how can some one stop you unless you want to get stopped.
By the way Sashwat have a blog, I saw it some time back. I think link is there in profile. This guy is an entrepreneur first then investor. I won’t be surprised to see this prodigy turned to a giant entrepreneur. That would be an excellent memory for us, we can say he use to write in a place where we happens to go as well.
@SlownSteady yes I would stay in the market and keep investing. Currently, my benefit is that I don’t have any responsibilities or household expense. So, I can invest almost 90% of my earnings without any hesitation. And that’s what I’ve been doing since past three years. I’ve diversified my investment into stocks, mutual funds, real estate, FDs etc.
@bbbhutra Yes, my current view, when I enter any stock, is 3-5 years minimum. I’ve been doing SIPs in the MFs which I’ve mentioned above.
I’m very bullish on RBL bank due to many reasons and I’m sure it can outperform most of the banks. I got to enter RBL at very early stage.
I’m into Metal because I understand that Industry. My uncle is into steel industry and I got to visit their plant and he made me understand their business, which made my views clear about other steel companies.
Pharma I feel is very difficult to understand because there’s a lot to cover while you’re researching. During Obama’s time of presidency, pharma was trading at an all-time high. And now currently multiple pharma industries are facing problems with the USFDA approvals. Companies keep getting notices. The period from 2008 to 2015 was the best for Pharma. Not just that there’s a problem in Europe with Brexit and new trump policy. And now few pharma companies are trading at 52 week low.
I’m currently learning about the other sectors before diving into any new stock. I believe that first I need to understand the sector completely before starting research of the company in that particular sector.
Thank you, sir. It means a lot to me. I’m still learning about the market. Your story just gave me more motivation to keep doing whatever I’m doing right now. I really love finance and equity market. I enjoy doing company’s research. Although currently, I’m really just a beginner but still learning new things every day Glad to see your reply on my post, sir.