I have revamped my portfolio cutting the useless PSU names and other bad stocks. Following is the list of stocks I have shortlisted and planning to add them in equal proportions.
Please provide your valuable suggestions. I would be happy to eliminate some names from this list. I know its not concentrated and I prefer a diversified portfolio.
There are some more in my list which I am working on which are:
KSE Ltd
Avanti Feeds Limited
Rubfila International Ltd.
Igarashi Motors India Limited
La Opala RG Limited
Camlin Fine Sciences Limited
Indag Rubber Ltd
Kesar Terminals & Infrastructure Limited
Premco Global Ltd
Nath Bio-Genes (India) Limited
I find it very difficult to develop conviction on even 10 stocks, 5 is out of question
Achieving 30% Compounding is the goal.
i also was in a similar position with the number of stocks above 30. Diversification was the mantra as I believed that i was in love with all the stocks and believed that all of them will do well.
But now i am a converting my portfolio to be more streamlined and concentrated.This simpler way of managing my portfolio has given me time to look more into the companies and see which one are growing and which ones are not.
i went about looking at SIMPLE companies which i can analyse or which is within my industry. then i got rid of companies which seem too complicated or i was not able to understand the business.
With so many stocks in your portfolio I think it will be extremely difficult to track them. With so much diversification, the best I think you can do is like a MF with 15-18% returns. 30% returns is very unlinkely on a long term basis. I would like to hear some comments from the seniors but they simply dont have time for us.
Thanks for the suggestions. I understand that stocks like Page, Eicher, Cera are consistent performers. But the trouble is having missed Page at 3000(currently 15000), Eicher at 2000(Currently 20000) makes me feel not to touch it ever as I have already missed the bus. Was busy buying junk stocks without learning much at that point in time.
Even though there are considerable number of stocks around 30 for the portfolio, it can be tracked with some efforts. I created a mock portfolio in google and here are my findings. Tracked the performance during different phases of markets in the last 5 years
Time Period CNX Midcap returns Mock Portfolio returns
Dec 2010-2011 -28.78% +8.58%
Dec 2011-Jan 2013 +35.93% +61.17%
Jan 2013-Aug 2013 -22.7% -0.72%
Sep 2013-Jun 2014 +64.76% +101.5%
Jun 2014-Jul 2015 +25.39% +26.35%
Overall 2010-2015 +47.14% +320.02%
This gave me the conviction I wanted to invest in the selected stocks with a longer time frame in mind. Please correct if my analysis is wrong in any way.
Because you missed investing in Page and Eicher much earlier, you feel right now is not a good time to invest in them.
Both businesses have deep moats, and Eicher promises to grow EPS at a rapid clip the next 3 years at least, while Page promises to deliver long term compounded return in excess of 17 - 20 percent.
Dont adhere to your negative confirmation bias. Both businesses should be able to compound at about 25 - 30% per annum over the next 2 to 3 years. My recommendation would be that you buy into both businesses.
I am not a big fan of targets like 30% CAGR. Buying high quality businesses and staying invested in them beats inflation and creates wealth. How early you catch each story and how patient you are with it will determine the magnitude of CAGR for that particular story.
Please provide your valuable suggestions. I would be happy to eliminate some names from this list. I know its not concentrated and I prefer a diversified portfolio.
There are some more in my list which I am working on which are:
KSE Ltd
Avanti Feeds Limited
Rubfila International Ltd.
Igarashi Motors India Limited
La Opala RG Limited
Camlin Fine Sciences Limited
Indag Rubber Ltd
Kesar Terminals & Infrastructure Limited
Premco Global Ltd
Nath Bio-Genes (India) Limited
