With the returns that ITC and Reliance have provided in the past few years, it is not huge but it provides stability to the portfolio. I will reconsider once better opportunities or market condition changes. with Reliance betting on new segments and if it works out, it would appreciate considerably over the next few years.
The point I was making is that there can be tough times for these Solid companies too when their returns will look very poor (as the Case with ITC in last 5 years). Some may undergo time corrections. It will be prudent to remain invested in tough times unless there goes something wrong with the business itself. If business do well, prices may follow one or the other day. No views on Reliance.
Disc: Invested in ITC. Have bought in last 30 days. Not a SEBI Reg Advisor
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Have you worked on above and willing to share?
We must note that anything shouldnāt be bought blindly at any price. we have seen discussion around quality bubble in recent times, although it will have people on both sides & that is what makes the market. As the first step of identifying the best stocks was completed, adding a column with SAFE prices (or PE) to enter would help in ensuring that expected returns can be achieved with this portfolio.
I did not spend much on this. Of late, they are tons of talk regarding quality bubble. If I make any progress with respect to this, I will keep you posted.
As of now, I am planning to follow buy on dips strategy.
Hiā¦ Navneeth no as the correction is very heavy due to COVID are you adding something in your portfolio?
For the past 3 years, I have 70% of my portfolio allocated to the blue chips & have been using covered call / cash secured puts strategy on my portfolio. I have made around 18% CAGR for the last 3 years.
I have lot of learningās during this phase & would consolidate all these before the new year.
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