Given the current market uncertainty you may have to wait little more longer to turn your investment into green. However, my first impression that i may clean the PF by removing some of the names such as FIEM, Inox, Motilal, Olectra, Radico.
Secondly your portfolio has very few large cap blue chips. So there is no point averaging the existing ones unless they are very compelling.
Coming back to blue chips, i would like to have HUL, Nestle, Asian paints, Pidilite type of stocks during market corrections. Not sure whats the point in having a 2nd Demat a/c.
22 companies? You have bought NiftyBees as well(Which is on other 50 companies). Can you go through AR and P/L and Balance sheet’s of all these companies?
HUL, Asian pains, pidilite, igl - Most of them haven’t corrected much and trading at expensive valuations. Being market leaders and well known brands they deserve those premium valuations but are you willing to buy at this valuation is something you alone can answer.
You need to re-evaluate some of these stocks balance sheet specially current liabilities and cash in hand to pay the same and interest coverage ratios ( ratio’s to check current ratio (or quick ratio) and interest coverage ratio). pay keen attention how slowdown impacting their business. Good luck!
22 companies is a bit too much and you also dont have any Pharma companies in it.
Its not clear whats your asset allocation is across the 22. Too much diversified portfolio also doesnt help.You should keep this to 12-15 max and focus your investment.
For the last few years I have avoided posting on individual portfolio threads due to certain reasons. But today I got up from that side of the bed which makes me want to start writing on all portfolio threads which start almost on a weekly basis. Please note this is not with a bad intention but I want to shine some light on things which many realize only after years. I make mistakes and will continue doing so.
So whatever I write dont defend or attack it. Just think about it. I might be harsh in my tone.
When you have a harem of girls you really dont get to know each one of them. You have 3 MFs which itself will maybe 50+ stocks each. Then you have gone and put money in 20+ more with 5 words on investment thesis. Why? Is this like buying lottery tickets?
You seem to have bought these 20 stocks over the last few months. So you built your portfolio in a very quick span of time. Why? How much research did you put it each stock. Why both HDFC bk & Bandhan. Why not only ICICI pru rather than HDFC life? Do you know how to value insurance businesses? I dont.
‘Any tips’? Yes I have three:
Sell all your stocks today. Save that money.
Start with 1 stock. Yes 1 stock portfolio. Put 10 thousand out of your bucket say of 1L. But go through a checklist which could be like - 3 yrs annual report, last 8 qtrs concalls, 2 ARs of competition, a simple valuation exercise, chart trend/pattern analysis, reading vp thread etc. Then after doing so write one page on why you will invest and another page on why you shouldnt invest. Yes write using pen and paper.
Go through @dineshssairam 's portfolio thread from post 1. I am not saying to copy his portfolio. But see how an individual picks stocks, forms his own thesis, stays concentrated, gets corrected, makes mistakes again, wins some, loses some. That thread I think has all of this. That is the journey we should go through.
Pasting a few snippets from Buffett’s letter to his partners in January 1966
Thanks… i will try to balance and surely go through thread you suggested…
Also about point selling complete portfolio…
I am currently in 25%loss after April end rally…
i am thinking to get rid of few companies…
some of companies on which i am really bullish regarding growth story are…
MGL+IGL (clean fuel…government support…fixed customer house gas supply)
I knw olectra has weak balance sheet but this is only company in India who is much ahead of all other EV companies ( also i see 2030 as electric buses moving around cities) with support of BYD china this can turn up into good investment… will not add more fund into this untill it shows some improvement in balance sheet
Affle increase in digital shopping + its business model
Bandhan bank I clearly added because of its margin. Also it has huge market and opportunity for growth
Manappuram finance is - good business model - low NPA
Insurance Sector - HDFC life low market penetration also increasing financial literacy amount young generation also HDFC group (I will soon sell icici pru)
l&t, hdfc bank, because of their goodwill.
INOX has became part of our life… almost once a month people go to watch movie it has good balance sheet, cheaper than pvr… and good expansion plan, will not add inox till it reopens…
Radico i have added recently because of increasing trend of drinking in Indians…
SBI, FIEM i have sold
but yes i will reduce my portfolio to max 15 companies…and will update this thread thanks…
any more suggestions are welcomed…
Any contradictions will be appreciated… we all are hear to help each other…
It is just not about reducing stocks but when you invest next time try to understand why you want to invest in any given company specially what kind of growth prospects you are expecting from those businesses and what would be your eventual returns for the length of time you are planning to hold. With so many stocks in your portfolio what is the return you are expecting? If it is not anything more than ~12% CAGR then it is better off if you invest in debt market or gold or something equivalent. I guess with so many stocks you may not even clock 8%. So you took lot of risk for getting returns which FD would have given.
Next time, do lot of research, understand business, P/L, Balance sheet, future prospects and more importantly risk /reward. Make sure you build portfolio which comfortably beats fixed income instruments else you are investing in risky instruments and gaining nothing?
Govt dont have money to spend. All Olectra deals were supposed to come from public buses. If Govt want to cut down spending, they surely wont go full on for EVs. This is not a recommendation to sell but beware of the demand and market condition
In same way, Bandhan is in a space most affected (microfinance). They also now have Gruh - which should also be adversely affected. So beware.
Inox & PVR - If I am not wrong are paying for the rental to the malls where they are in. With no shows they will currently keep paying those rents. They may have few lease incomes themselves. So, beware of the income & outgoing.
Have cash generating businesses like IT, Pharma ,FMCG - these will survive the downturn. You have L&T - which is low margin for what they do. IGL & MGL are good.
