Portfolio Analysis - Need Suggestions

Q&A: Questions & Answers Portfolio Q&A
1

Hi All, Following is my portfolio, Want to get an opinion on how it looks for long term. and i like to keep all my holdings for coming 5 to 10 years.

Top Holding (in %)

INFOSYS LTD - 32
STATE BANK OF INDIA - 9.5
NESTLE INDIA LIMITED - 9.5
STRIDE ARCOLAB LTD - 9
SUZLON ENERGY LIMITED - 7.3
MUTHOOT FINANCE LIMITED - 7.3
YES BANK LIMITED - 6.8
COAL INDIA LIMITED - 4.9
SUN PHARMACEUTICAL INDUSTRI… - 3.4
HDFC BANK LIMITED - 3.4
HDFC, ICICI, Amines and Plasticizers, GMR Infra, NHPC < 2

Thanks
Bharath

2

Hi Rudra,

Thanks for sharing your portfolio. Could you share some thoughts on below questions? that will help VP’s to comment better

  1. What is your expected horizon of each investment?
  2. Seems like you have a concentrated portfolio. How much time can you spend researching ideas?
  3. Expected Return threshold
  4. What is your investment style?

cheers,

3

Thanks for replying, below are the answers

What is your expected horizon of each investment? - Personally i feel to keep them forever, but if the business closes then might sell :slight_smile:
Seems like you have a concentrated portfolio. How much time can you spend researching ideas? - First i used to invest by taking others suggestions, but nowadays i invest based on looking at the business and the ratios. And if good company falls by a large percentage because of bad news i load those stocks (example Nestle, Sun Pharma etc)
Expected Return threshold - expect to earn around 10 to 15 % year on year
What is your investment style? - Long term investor

5

Hi Rudra,

Thanks for replying. If your investment threshold is 10-15% then maybe index funds/NIFTY are the simplest way to get there, as long as you buy at reasonable multiples of NIFTY.

The reason i say this in large caps u would rarely get information edge. At max u will get temporary blips like Nestle. The challenge with this is that these blips are rare. So the better approach remains to be in index.

In case though u want to have higher returns then u might look at VP stocks and that realm.

For portfolio:-
32% in Infy is really huge unless you know something which no one in market knows :smile:
My recommendation- exit suzlon, SBI. They can be entered when things really change. There is a lot of mess in these cos.

cheers,
Saurabh
PS- i dont hold any of these stocks

6

Interesting approach. If you can do this consistently and focus on large cap companies where the probability of the business bouncing back is much higher, then you will have a good percentage return. You need to be careful not to try it with small caps or mid caps because sometimes there business is not always as robust.

7

Thank you Anubhav, will do more research on SBI Coal India and Nhpc, but will exit GMR

8

Yes Saurabh i am very new to this blog Will look into the suggestions and invest. :blush:

9

Thanks Abhishek, will stick to large caps and mid caps :blush:

10

I like and invested in strides. It has got one of the awesome management.

11

Thanks Subash. I too like the stock.

12

While the management has been seen to be share holder friendly, since it returned money to them after the sale of Agila to Mylan, yet one must remember that there is no inkling of the sale in any previous Annual Report. This sale surely caught the share holders by surprise. While the management did not short change the investors, they certainly did surprise them. What one would prefer it more predictability. I would like to know that if a product line or a business is built today, it remains with the company with predictable earnings.

Regards
Arun

13

@Arun, i think as they grow bigger, the predictability too will increase. this is my thought.