I have been focusing much more these days in restructuring my portfolio and very soon will share the updated holdings. Trimmed the portfolio quite a bit and added / increased the holdings in few conviction stocks which are better valued in my view.
One thing which I wanted to share with the group is the Checklist that I have created recently. The stocks that I will think to invest in must fare well as per this Checklist before I dig deep into financials, technical (this has become a key consideration for me these days) and quality of business. If the company scores poorly under this checklist, more often I don’t proceed further. These are all fundamental related aspects. Having said this, there are a few stocks that I bought recently just based on conviction or better technical aspects, so it’s not a hard barrier for me, rather a soft gate criteria.
Here is a brief description of the Checklist. This is WIP and I may tweak this a little or more or add few more parameters in future. There are total 33 parameters as of now and I score each one of them equally to get a final score. If the score is below 20, I normally don’t proceed further as I mentioned above. Having said this, if the score is poor under DCF valuations and overall score is still more than 20, I try to avoid such companies.
Views are appreciated! Thanks in advance!
Here is my updated portfolio:
I haven’t calculated XIRR because many of the stocks in the portfolio are recent buys.
hi just want to know difference between hold value and current value
Hold value = No. of Shares * Buy Price
Current value = No. of Shares * Current Price
You can change the nomenclature as buy value and current value instead of hold value confusion.
Cool, will do it … thanks for the suggestion.
These stocks are the recently purchased ones (mostly in last 2 months)
Exactly one month ago, I started managing my investments on Trendlyne. I have 3 demat accounts (2 mine and my wife’s 1). Two of my old demat accounts are with Sharekhan and one with Zerodha which I opened during COVID time. It was getting quite difficult to manage and track the performance, so I imported all my portfolio on Trendlyne.
Today got pleasantly surprised that in one month, my holdings have given better returns than the index. Hopefully this form continues. Here is the snapshot:
Hi @abhikjha Have you included the MF Holdings also in Trendlyne? my colleague says divided not including automatically is it so… using paid subscription? Thank you.
Hi, I haven’t included MF as yet into my portfolio. Will do that maybe in sometime. However I track my MF portfolio separately on Zerodha Coin app. For dividends I am not sure as I started using this since last 1 or 2 months. Will update in case I get or otherwise.
I tried using ValueResearchOnline platform to calculate XIRR of my holdings. As I mentioned, since I have 3 demat accounts, it was a pain to calculate the XIRR of my portfolio especially for my Sharekhan demat accounts (I have 2 of them).
One word of caution if someone is trying to upload his / her portfolio in VRO platform, please take care of the bonus / split shares as sometimes it gets messed up. I manually adjusted those bonus and split shares that I got in last 10 years before I uploaded entire portfolio on the platform.
Here are the results:
Zerodha account (3 years) - I have started investing in Zerodha account since 2020 and these days I am using only Zerodha to purchase any new stock. Sharekhan is only for selling or applying for IPOs in case of shareholder category. Here is the XIRR for Zerodha account.
For all demat accounts (> 10 years) - I have started investing journey since late 2012 / early 2013. So, it has been almost 10 years now. Below is the XIRR details of my entire portfolio across all 3 demat accounts (2 Sharekhan and 1 Zerodha):
Added one more criteria in my checklist (reverse DCF):
Thanks for sharing such an elaborate note on your portfolio allocation ideas.
I would love to hear more about your position sizing strategy (if you have one already) since I see that many of your multi-baggers like CCL, Berger, Gujrat Ambuja etc had lower allocation.
You actually have hit my achilles hills . This is one of the biggest regrets I have which is not to bet bigger in those stocks at that time. But we all are wiser in hindsight.
For example, 5000 (hypothetical number) in GAEL around 9-10 years back became 90000. 1000 (again hypothetical )in Firstsource became 17000. Investment of 20k in Berger paints became 2.20 Lakhs. We do talk about it as well but nothing you can do actually.
These all stocks that you mentioned are my early investments. At that time, we just got married and were in mid 20s. Didn’t have slightest of the ideas about investing, so we were extremely cautious and fearful of what would happen if we lose money and therefore size of investment were lower.
We also purchased our first home in 2016 and at that time I liquidated some part of my portfolio and some of them were even more multibaggers such as Can Fin homes (bought at 20 and sold at 2800).
When I look back, I realised that I am not doing that poorly when it comes to assessment and stock selection. I mean 27% XIRR over 10 years is not a small achievement in my view . Therefore, by looking at what we missed, I have now learnt that if I am convinced about the idea and valuation looks cheap, I will go for big bet. All my recent investments where I have conviction such as PDS, DP wires, Panama Petrochemical, Guj Themis etc., I have invested large amounts (the max which I could have afforded). Hopefully they become multibaggers too in next 10.
This is so refreshing and counter-intuitive. Please do read:
This is what Buffet has to say on benefits of falling stock prices
Thank you for sharing your thoughts.
Right now, my primary train of thought is around portfolio concentration (and its risks thereof) and position sizing. After years of investing experience and a fair share of pluses/minuses, I can duly attest that these 2 ideas can immensely impact terminal value for each of our portfolios.
At a personal level, I have been able to resist going beyond 18-20 companies. Want this number to be within 10 in the next 7-10 years hopefully. Hence concentration and sizing are 2 key aspects for me.
Unfortunately, hardly any literature (If any at all) is readily available to learn from to build a 2x2 framework to begin with. Hence, trying to pick from my peer network. Do share if you’ve any thoughts about the same.
PS - thanks for sharing Saber Cap’s article. Weekend’s a great time to think laterally
Concentration and position sizing is important, as everybody say. But consider a thought…You hold 2 paint companies Asian paints and berger paints. You equally allocate.money to them. So whether you invest in only asian paints or only berger paints or invest in both, your money will be compunded at 25% cagr and in 10 years , it will become 10 times. So if you choose good growth companies, who can grow equally, how does it matter whether you invest in 10 companies or 20 companies, as long as your money gets multiplied in the same manner? Kindly help me.understand this, where i am going wrong…and also what is 2× 2 framework? Kindly elaborate.
In my view, position sizing can be directly related with concentration. If you have let’s say a fixed amount per month to invest, you will have higher position size if you have lesser number of stocks compared with higher number of stocks. So, I think concentration is the key. Furthermore, with lots of stocks, it becomes difficult to track and monitor the performance.
@Mudit.Kushalvardhan , I agree with your views. If you have multiple potential multibaggers in the portfolio where you have conviction and you bought them cheap, then nothing like it. However, you can’t expect different stocks to give exact same returns as it depends on a lot of factors. If any one has even slightly higher future potential, it’s better to put all your money in that stock rather than dividing it by two.
2 x 2 framework Goofy mentioned is position size vs concentration. But I think both are interrelated and in my view concentration is the key.
We all use Screener.in to select our favorite stocks. It’s such a fantastic tool. Over the years, I have used many screener queries to filter out the stocks that I wanted to invest in but none of these come close to this query which absolutely suits the criteria which I normally look into for any stock for investment purposes.
Majority of the time, I pick the stocks from this universe which I call Good Universe, then do extensive fundamental analysis on my excel based model and finally analyze the technical charts to see if any price momentum exists to make up my mind for investing.
Here is the list of all stocks which are qualified based on my screener: