Nikhil's Investing Portfolio - Feedback Invited

Hello guys,

I have started building my investing portfolio seeing the draw down available in the market.
I have selected quality names to invest in across market capitalization with every stock being a market leader in its respective sector.

Below are the Stock Picks and their respective weightages -

  1. HDFC LTD - 2%
  2. HDFC BANK - 6%
  3. BAJAJ FINANCE - 8%
  4. KOTAK MAH. BANK - 6%
  5. HCL TECH - 3%
  6. TCS - 3%
  7. TITAN - 6%
  8. ICICI LOMBARD - 4%
  9. HDFC LIFE - 8%
  10. RELAXO FOOTWEAR - 4%
  11. BATA - 6%
  12. DR LALPATH LABS - 4%
  13. ASIAN PAINTS - 8%
  14. DMART - 8%
  15. RELIANCE - 4%
  16. HUL - 4%
  17. NESTLE - 8%
  18. PIDILITE - 8%

As you can see, these are all quality stocks and market leaders.
FYI - This portfolio is still under construction and hence I have not achieved the above desired weightages till now - will continue to buy in this market fall - and expecting that my portfolio will look like above once i am fully invested.

Exit Strategy - This is a buy and hold portfolio with regular monitoring and not a “buy and forget portfolio as consistent compounders say”. The exits will be based on extraordinary high valuations or fundamentals waning off or lack of growth.

Will highly appreciate if the members can share their valuable feedback on this portfolio.

3 Likes

Hi,

Stocks you have chosen are undoubtedly good.Just 2 points I would like to add.
In my view

1-> If possible reduce the number of stocks to <= 15 from 18
2-> You can reduce a bit exposure to financials and increase the same in IT/pharma.

Thanks,
Deb

Thanks for the input @babu44b

I have avoided Pharma as there is lot of overhang from FDA, if you see.
Similarly, I have avoided sectors where there is a regulatory overhang and where I don’t see growth like realty, PSUs, metals, etc.

This right here is a ZERO tension portfolio. Once the market reacts positively, these will be the first ones to go up but on a longish view, you could easily see yourself earn a Cagr of 15% just by entering at a great time.

@inValuable That’s what I was going for.

Quality companies which can provide 15-20% CAGR over a long period with regular monitoring with great entry prices like we are getting now.

This is a safe portfolio but I’m not sure if it will outperform a mutual fund or an index. If you tried to calculate the intrinsic value of some of these companies, like Titan you’d see that these are already marked at huge premiums to the market, the potential gains would be low plus over 10 years they may not really outperform markets.

I can’t go and do intrinsic value calcuations on all of them but I’d recommend running every stock through DCF formula and Graham formula, you’ll find some major red flags.