ValuePickr Forum

Portfolio review - kmv

Hi, Though I have been in markets since some time, I have not made any money as I have not consistently invested in the markets. I have been reading through valuepickr posts for some time and decided to build a portfolio for long term.

In this thread, I would like to discuss about my portfolio and get feed back from the fellow valuepickrs.I invested 15 perc of the amount last week, decided do SIP going forward.

Portfolio::

STOCK Name SEGMENT Allocation Comments
HDFC Bank Banking/Finance 10% Leader in Bankaing
Piramal Pharama+House 9% Pharma+housing
Dmart Retail 9% Leader in Retail
ICICI Lombard General Insurance 9% Leader in General Insurance
Asian Paint 8% Leader in Paints
Pidilite Adhesives 8% Leader in its segment
Bajaj Finance Banking/Finance 8% Leader in Consurmer Finanace
Mindtree IT 8% New Management
Polycab Cables/Wires 7% Good Products, trying to increase market share.
IDFC First Banking/Finance 7% Hope Story, trusting capital first management.
PI Industries Chemicals 7% Agro + CRAMS
LTTS IT 6% Leading global ER&D services company.
Equitas Banking/Finance 6% Trying to be retail bank
Sterlite Telcom 6% 5G Story Unfold, Should benefit Sterlite

Will keenly wait for your comments.

Thanks,
Phanendra.

1 Like

HDFC bank, Asian, Pidilite,PI ,BF ,DMART - although great quality stocks but they’re trading at historical high prices. In short term ,in current market scenario you may get 5-10% more but how long this run would continue , no one can say.

Long term they may give you good returns but here long term means really long term. Market tend to become rational today or tomorrow, be careful about that .

2 Likes

Good set of leaders. Expected returns should be moderate but will give good night’s sleep.

Not sure about IDFC First, 7% allocation seems high. Why not wait for the Equitas bank to list instead of buying the holding company? Sterlite also does not fit in this portfolio. Maybe add a few FMCG companies since the portfolio does not have any. ITC, Godrej Consumer are still available at a good valuation levels.

Overall, the picks look fine. Pay attention to the price you paid. Many of them are hitting 52w high. Is it possible to disclose your avg. buying price?

You have total 10 sector having large exposure to the banking/ Finance 31% (could you please share your rational behind this ?)
The maximum exposure to any sector should not be more than 1/8the of the total weight but if high conviction one may reach to 20 to 22% to be diversified .
Most of the stocks are trading at higher multiples.
could you please share your valuation method which you are employing while analyzing the stock ?
One an not change the buying price if gr8 companies are bought at high valuation that may lead to lower wealth growth .
One must be equally guard against the downside of the company .Wealth protection should be priority over and above the wealth creation .
Money making in tock market is not so easy so my humble suggestion to create some process and procedures If you already have please share ( like DCF or checklists ) The Investment became gamble in absence of strict buying or selling discipline . You have mentioned the stock names it will add some value if you had set AT WAHT PRICE I should BUY or WHEN should I EXIT from a stock it will add a good matrix for creation of Wealth .
everything is have a price and thus offer the VALUE . I had experience in my past that employing cash is very easy thing ( and certainly the folly in long run … ) one must wait on the side lines and wait for the suitable tide to ride on like surfers they wait for the tide . 10% is money and 90% is the Psychology behind the business of investing in stock
the VP is pure Gold mine one must dig well . and I insist to study the old company’s cases … in resources section and Archives
regards