I started investing 2 years back with basically no knowledge and losing money.
When my portfolio started to shrink i did not make any changes and kept holding on to it for better days.
Currently this is my portfolio-
Name. Holding. Return
Coal india 1.01%. -26%
Gmm. 48.91%. 316%
I bought a small qty of gmm this year but it has grown to increase my holding value to this %
Greaves cotton 4%. -33%
Hdfc life. 6%. 26%
Lt foods. 3%. -35%
Motherson. 5%. -31%
Pix trans 2.65%. -15%
Tata tele. 2.08%. -58%
Vakrangee. 22%. -40%
Overall my portfolio seems to be going down in value since i bought them.
Would like to get your valuable advice on this.
I would suggest you to search threads for each stocks read about them in details, learn what makes a stock good & bad, acquire knowledge & become a self. reliant & successful investor.
To be frank I don’t know a lot of these stocks, but few generic rules to be followed everywhere.
- Invest in at-least 5 sectors with not more than 20-25% in each.
- calculate your risk profile & allocate accordingly, if you have no knowledge you are bound to loose in small & mid caps.
- Don’t chase multi baggers, even the moderators & Top contributors in VP community will tell you how hard are they to figure out, and if you want to neglect this advice then please do but after learning a lot & loosing some money during the initial days and spending atleast 2-3 years.
Why did you allocate 22% of your portfolio to Vakrangee? It has serious corporate governance issues and no viable business model. I would suggest you to do more research on company’s history and their cash flows. Please go through the respective threads for your portfolio stocks. Vakrangee thread has extensive discussion on issues with the company.
Yes i am aware, i invested money on tips from other people (big mistake) and lost a huge chunk. Now just stuck with it.
Although I don’t follow this stock, but I know the plan, whenever you figure out your stock has some serious issues, exit it the very next moment, it doesn’t matter whether you have lost 40% or 80% of the investment amount.
I would urge you to never get stuck with such companies in the hope to recover little more than what market is offering right now, use the same money to buy better stock and multiply the investment rather than keeping it stuck with a high chance of loosing it all.
Quick & simple strategy if you don’t know anything & don’t want to know anything, the least you could do is avoid all the companies that have anything on the cons column in https://www.screener.in/company/VAKRANGEE/consolidated/
While it is not easy, I would suggest you to sell whatever you can of the companies which you perceive as bad. Wait for the corrections and invest in top quality companies with time you should be able to recover your money and make good profits too. If you want to be too conservative then you can think of mutual fund route too.
I would suggest you to remove Vakrangee and Tata tele.
Cotton, rice, auto and rubber are cyclical. You can wait for cycle to turn in few years or remove and add defensive stocks for current scenario.