Newbie Portfolio

Hi, Im a recent graduate and recently started investing in stock Market about 6 weeks back. I have allocated 70% of my capital for long-term value investing and the remaining 30% for short term. Most of my short term bets are based on my long term stocks which i hold.I got to know about value investing through my sisters friend. he has said zf steering at 280 and within a couple of months it went to 350s. This is was my first stock i picked up and thus in time i found this wonderful forum.

Initially i have been investing blindly on tips but now looking at fundamentals and management with serious outlook. most shares i bought were through the net but some shares through my dad and some through a couple friends.

My shares - ( Avg price ) ( cmp ) (approx %)

AVT Natural - 47 54 6%

Basant Argo - 6 10.50 0.5%

Capital first - 241 333 9%

Capri Global - 175 185 2%

Coral India Fin - 34 35 1.5%

DataMatics - 57 86 12 %

Fe India - 13 15 2%

Flex Foods -70 88 2%

Gati - - 123 190 9%

Hexaware tech - 175 178 7%

IFGL refactories - 157 210 5%

Jai Balaji Industries - 28 20 11%

JayBharat Maruti - 109 130 4%

Kitex Garments - 336 377 1%

Marksans Pharma - 33 60 1%

MM forging - 224 474 0.5 %

Mold tek Packaging - 97 170 5 %

Morepen labs - 5 12 2%

Paper Products - 164 188 1.5 %

Patel Logistics - 39 44 7%

Polyplex corp - 244 308 2%

PTC India FIN - 44 45 3%

RS Software - 386 741 5.5%

Texmo pipes - 15.50 19 2 %

Vinyl chemicals - 44 51 3%

Zf steering - 396 530 3%

guys can you advice me on this. My dad keeps insisting i shouldnt have more then 5-9 stocks in portfolio, but i disagree, Im sure back in the day it was better to 4-5 good stocks, but now with his bull run i feel its better to have more stocks in your portfolio.

Also jay balaji industries has given me a beating after this coal block. I had already sold 25% of my shares at 17rs but still it covers 11% of my over all portfolio. What should i do?

Look at store one India retail. The fundamentals look fantastic. Im thinking of buying. Whats your view.

Im a newbie, I dont know if its beginners luck on a nice bull run, so far im enjoying the Market. Any guidance / advice’s or constructive criticism would be highly appreciated

Regards,

Pranab

Hi,

It is great to know that you’ve started investing after the graduation and being part of big bull run happening from Sep’13. My thoughts based on your PF and data given would be:

)- You’re having 26+ stocks and almost looks like MF (small cap). It is good to define the aim of portfolio and time horizon (long term vs. short term) you’re thinking.

)- Try to keep the # of stocks within 10 to 15 so that we’ll keep track/learn the happenings on the business we’re investing. (Or Try to keep the # of stocks which you’re able to tell/remember without looking at PF tracker any time :))

)- Capital allocation – There is an excellent thread in VP. Please read/learn from that. It may be good to keep capital allocation per stock at-least 5%. Your PF is having stocks with 0.5% which are not going to impact anything on overall PF returns.

PF changes

a. Jai Balaji Industries – It is a very risky bet. Please prune the allocation from 11% to less than 5% if possible.

b. Relook at the stocks which are allocated < 5% and increase the allocation for few stocks or consolidate since seeing lots of engineering/auto stocks. Allocate the top#5 stocks with 50% capital and remaining 50% for remaining 10 stocks.

Thanks.

-Muthu