Hi there, below are the few stocks I have invested in for medium to long term. I come from engineering background and have limited knowledge about economics- per se investing. I have been following many threads of esteemed VP members and reading books on equity investment as suggested in forums and from what I could learn & process in past 1 year, I have selected below mentioned stocks. My expectations from my current portfolio is less than 10%, actual returns are -9.2% till date, however, I wish to achieve annualised return of 15-20 percent from 2020 onwards. Before you ask why from 2020? I feel that it will take at least 3-4 years of rigorous efforts for someone like me to understand all the nuances and come up with a half decent process of stock selection. Also, the list follows descending order of my conviction and portfolio allocation in individual stocks.
|Sl. No||Stock Name||% of PF|
|3||L&T Finance Holding||8|
|6||Chaman lal Shetia Exports||6|
|10||NGL Fine Chem||5|
|15||L&T Technology Services||4|
I have tried my best to filter out the noise, but after looking at above, I can see some popular choices have crept in my portfolio. It may not be a bad thing but I am trying to find companies with above average ROE and a good runway for growth that have less to no MF/Analyst coverage. For valuations, I try to do basic DCF and relative/industry valuations but usually I don’t adhere to my valuations and end up using investing websites data. Hence, in current volatile market I am making my purchases in SIP mode. Till earlier this month, I was sitting on almost 40% cash but decided to deploy the same as I don’t think market can be timed but only the individual stocks to an extent. I know it’s important to learn doing valuation properly and I am working on it. Meanwhile, I request you all to present your views on my current portfolio and suggest the improvement/changes I can bring.
PS: Please ignore anything that you find juvenile and remember I am novice.