Saurabh's Portfolio

Q&A: Questions & Answers
1

Hi Guys,

Given below is my portfolio and request feedback from members. Unfortunately, i have been a late entrant to this forum and hence the usual suspects like mayur, astral, ajanta etc are missing.

I try to classify my portfolio into 3-4 themes and try to be equal weighted amongst them.

Stocks % Holding
Cash/Asset Bargain
Aditya Birla Nuvo
 7 %
First Leasing
 6 %
Piramal Healthcare
 7.5%
West Coast
 9%
Bharat Bijlee
 5.5%
Garware Wall Ropes
 3.5%
JM Financial
 3%
Growth ideas
Oriental Carbon
 6%
Magma Fincorp
 6%
Thangamayil
 6%
Ashiana Housing
 3.5%
Kaveri Seeds
 2%
Ashoka Buildcon
 35
Debt Capacity Bargain
Mazda Ltd
 6%
Poddar Pigments
 3%
Sugar Stocks
 10%
Special Situations + cash
 15%

As of trying to reduce stocks/ % allocation on Bargain side and trying to increase it on Growth Side. Also, trying to reduce no. of stocks to 15. Stocks which I am reviewing are First Leasing & Garware Wall ropes.

Feedback, views, comments invited.

Regards,

saurabh

2

Hi Saurabh,

First of all, you have way too many stocks, which is not a very good idea, as your research effort, per stock reduces with increase in number of stocks. Also as a thumb rule, portfolio with large number of stocks tends to underperform as compared to stocks with lesser number of stocks.

I am not familiar with most of the stocks, so I can’t comment on them. You can increase the % of Kaveri seeds in your portfolio.

Also it is a good idea to add few good stocks from sector that are getting traction, or are in a bull-run phase. (For example currently pharma stocks are in a fire).

Another good idea is to have few stocks from the top 10 stocks from valuepickr consolidated portfolio (i.e. Mayur Uniquoter, Ajanta Pharma, Unichem Pharma, etc). Most of them fall into either a high/consistent ROE/ROCE company quoting a less than 1 PEG, or turn-around story)

3

Hi Subhash,

Thanks for the input. Yes, the endeavour is to reduce the no. of stocks to around 15 by weeding out average businesses or poor picks. As i am still early in value investing, i think i will be slightly more diversified. As my experience and conviction increases idea would be to move towards a concentrated portfolio.

Mayur looks very interesting, but as Donald has said in its thread, i think we need to re-look at the story there. If all is well then that is a definite add on to my portfolio.

regards,

saurabh