I am very new to investing, invested for the first time in July 2020 and have moved on substantially from there on.
From a learning stand point
I have red few books on Coffee can investing and Value investing - Two different strategies, and I am yet to define my own strategy. You could also see that reflected in my portfolio is 50% value based and 50% coffee can (Except reliance, I bought it first time in frenzy, don’t want to add)
Have started reading the annual reports, concalls of the businesses I own
Use screener for stock valuation
Track the businesses & benefit from the healthy discussion in value pickr forums
Can I please request you to share your views on my portfolio - please note that the reason for asking to review is to get multiple viewpoints about anything obvious ( 4 eye principle)
In addition please let me know from a learning standpoint if I should start/stop doing anything
Wealth creation over long time (10+ years 12-15% CAGR)
Generate Corpus for PMS if DIY doesn’t work for me
Company (% of the PF)
ITC - 30%
McDowell - 11%
Tech M - 11%
HDFC Bank - 10%
Pidilite - 8%
Brittania - 8%
ICICI Prudential life - 7%
Infosys - 6%
HUL - 4%
Reliance - 3%
Nestle - 2%
Investment Method :
A lumpsum to start
Add to companies where low intrinsic value
Add funds when there is a dip in a good business(High PE)
Timeframe - 10+ years
Risk appetite - Moderate
Holding per asset class ( Excluding the house where I live)
Real estate - 30%
Fixed instruments - 30%
Debt fund - 20%
Equity - 20%
As I said, I am new to financial instruments, hence from hereon I expect equity to go higher up in %
At a high level and speaking generally, your portfolio looks good except the 30% to a single stock (ITC). I would suggest to reduce the allocation a bit and may be move it to other stocks with lower allocation.
Also, feedback would depend on what your investment return objective is, your time frame, risk tolerance, % net worth in equities etc. If you add these details people will be able to provide better feedback.
Would love to see your thought process behind selection of each of these stocks.
Overall the portfolio has good stocks, but a bit surprised to see ITC got 30% allocation. Also a bit surprised not to see any pharma, speciality chemical names in your folio, as these sectors are expected to do well in the next few years given the tailwinds. It is interesting to see, you have gone for Infosys and no TCS ? All the best.
You are holding a good set of large cap stocks. As per my limited knowledge, such kind of coffee can portfolio should do well over long term with even equal allocation. One should be cautions when breaking the allocation rule and get overexposed to a particular stock. All the best.
In bank sector
I like hdfc and Kotak Mahindra bank
In gas distribution sector (I think should have this )
Please track these
Indraprastha gas Ltd
MahaNagar Gas Ltd
Amber enterprises ( air conditioner) is also a healthy stock as it’s past performance
For playing with small cap
Amarraja batteries great you should track because of
Vinati organics ltd
I THINK YOU SHOULD STUDY AND SEE WHAT CAN CHANGE IN YOUR SURROUNDING AFTER SoME YEARS
LIKE IN NOIDA DELHI GAS DISTRIBUTION WITH PIPELINE IS PLAYING ITS ROLE
Excellent portfolio. The current price of ITC is attractive. Hold ITC in coming 5 years it will be full pledged FMCG company.
All the stocks looks like a stable performing stocks
You can add 5%of IDFC first bank as part of risk portfolio… Just my opinion
My 2 cents:
As everyone above saying high exposure to ITC, but your actual exposure is 30 x 20% =6% of your networth, which is OK.
Similarly try to increase the exposure to other quality stocks too, so that they will have meaningful impact on your networth.
Please go through the portfolio allocation and strategies threads in the forum and decide yourself.
I thought I would provide an update on my portfolio. In this time period, I made only slight adjustments to my portfolio
Overall did very little churn of the portfolio; Didn’t reduce any Qty from ITC, Tech-M and other stocks, just increased qty elsewhere to get the portfolio allocation better
Inflation Hedge: Added gold to my portfolio and some cash allocation went to real estate (Didnt exit equity, but was cautious to add more due to the valuations)
Added HDFC Life and exited ICICI as I always wanted to own HDFC life due to superior product distribution, and I could buy due to some dip. Staying in ICICI life would have given me superior returns, but nevermind
Added Amararaja as it’s a strong battery company with a forward-looking vision on going Green
Added HDFCAMC & Kotakbank due to the conviction on Financialization theme, I expect more inflow into the mutual funds - Lower penetration, Low-interest rates, Better awareness reason behind the conviction
Exited reliance as it was from borrowed conviction
Liked your thought process here. It’s difficult to time the exits and more often than not, in not so good companies, I have personally managed to exit just at the wrong time…but that’s a learning curve we must embrace by both hands…and glad you took it in your stride…
For a new investor, you have a solid portfolio with all the right ingredients for compounding…sip in dip and buy in crash picks!
If you take my word , we foresee a major correction in coming months.
My suggestion would be exit out of everything (may be except ITC). There are chances that your unrealized profit may remain unrealized only for next 4-5 months. If I was at your place, I will sell most of it and come in cash. Would buy these cheaper after few months.
If you were sitting on huge profits ( multibagger returns ) , then my suggestions would have been different . Your profit is too low as of now. Wait for the correction to be over . After correction, you would find better companies at much lower prices.
Although you did not ask me, but I think anyone including me and you can give 10 reasons that why market would crash and 10 more why it may not…point is - what is your investing strategy? If you are fine with that, rest is noise…
If selling completely at every crash/drop/bear/impending bear markets/etc. etc. and buying again would be so simple and straightforward, everyone would be rich doing just that
I cant agree with you more. My strategy is to stay invested, if there is a crash i am happy to add more regularly. If no crash still continue until i have a sizeable corpus that would compound. Just that i dont find a lot of opportunities (not skilled enough) in direct stock picking these days. So i would rely on Index/Mutual funds until i can spot opportunities.