I have always been fantasized about how one creates a portfolio, the portfolio construct changes between types of strategies and one keeps on learning.
Let me start with my style and how it has evolved over time. I started sometime in 2016 end or early 2017.
Initially like most beginners I have very concentrated after reading a lot of investment books , being in the age of NBFCs I had a concentrated PF of 6-7 stocks and most of them in financial segment.
I used to have 60-70% in top 3 holding and totally just 6-7 stocks
When ILFS happened it was very painful and I realized the important of risk management, it was also my first experience of a downturn, also realized how long it takes a for a sector which loses favor to comeback to its previous high (Infact in 2022 one of my Financial stock is still below my 2017 cost price)
In one of my visits to a conference in Chennai (TIA) I realized that concentrated investing works only when you invest in B2C businesses after listening to one of the speakers in the conference
Post Covid I started nibbling into Pharma and Chemical stocks , started paying attention to allocation to sector as well as single stock allocation.
My current portfolio allocation
Pharma & API - 21%
Cap Goods - 15%
Chemicals - 31%
Platform Tech - 16%
Auto -7%
Construction - 5%
Misc - 5%
Highest allocation in a single stock is 15% (Because of my cash postion) , my average allocation in a single stock is 6-7%
Going forward I would like to create a 80-85% in my core portfolio and create a basket of stocks that are interesting and at some point of time would get into my core portfolio, I was inspired to get into this strategy after seeing an interview of Mr.Utpal Seth.
I am currently sitting on incremental 50% fresh cash which I am yet allocate, although I have not sold any of my existing holdings
A little background about me , I am a full-time investor but at the same time I don’t depend on the returns from market for my livelihood and I do not involve in any kind of trading activity in stocks.
I would like to hear from you all about your portfolio strategies for a learning exercise, Thank you!