Dear Respected Members,
Please give your valuable feedback about my portfolio.
Objective is to grow portfolio @25% CAGR with high quality names. Had not so good experience with Granules (waiting period & loss) and Kitex Garments (blind speculation). In the process of creating a solid portfolio which can reasonably withstand downturns.
Appreciate your views.
Investing 1-2% in companies may not provide much upside at an overall portfolio level even if these stocks were to double/triple from the buy price…only helps limit the downside; pls consider consolidating your holdings into companies you have well-researched & have high conviction levels and track them closely or take these 1-2% positions higher if you are sure of their potential (hope that’s your plan with the 28% cash you carry). Portfolio & sector allocation along with process is as important as choosing the companies you invest. For a retail investor 8-10 companies across 3-4 sectors provide enough diversity & room for portfolio growth, besides being easy to keep track of in the long run; i have no investments in the above companies so unable to offer specific comments about them.
Hope this helps.
thanks for the info, I am newbie here, what I understood from your comment about asian paints as a well discovered, is it is a popular stock, with high valuations, just like maruti suzuki or infosys…these stocks generally trade at a higher price and higher valuation.
To get 25% or higher CAGR, one needs to find out small cap companies, with growth potential, that is multibagger stocks…
Am I right?
but, only query to you is, these large cap, high valuation cash rich companies, also pay lot of dividends, I have heard from people, the only reason, some people are holding, large cap companies bcz of the dividend yield.
Is it true? please provide your views on this.
Thanks. I am in the process of ramping up the holding when the prices cool down.
You have a point. At the same time well discovered stocks like Asian Paints are doing very well. It is also work in progress to rebalance the portfolio. An equal weightage allocation to all the stocks will not recognize the high performers.Of course everyone has their views and approach.Thanks for letting me know
I agree with you.
We must first invest with a view of restricting downside.
It is difficult for a normal person to dig deep into any company’s product profile, its customers, revenue distribution, etc. and all. It is better to hold on to big names at-least to start with. These are already well discovered companies and may provide downside risk protection when market goes down.
Even I hold a small portfolio having big names with no debt like Pidilite, Abbott, P&G, HDFC Bank as part of core portfolio and Opportunistic bets like Avanti and Divi.
It will be nice of you can add pharma to the list.