Shobhit Learnings and Long Term Portfolio

Hello All,

I have been following VP forum as a silent spectator for the last few months and find it quite useful and this is my first attempt at posting something. I have been following the markets since 2017 when I dabbled in the markets as a quick way to riches. As expected, it was a nightmare and I paid my fees by facing colossal losses buying stocks on Twitter tips at the peak of the bull run and then selling when the bears attacked thereafter. Since I had bought on tips, I had no conviction in them and simply followed what some ‘experts’ of the bull market on Twitter had been suggesting but no one guided what to do thereafter and I panicked when the markets crashed during 2017-2018.

Henceforth, I came across a well known person on Twitter who is a proponent of keeping things simple and only investing for the long term and reminding people like me who are not so good at finding the ‘multi-baggers’ and that changed my approach drastically. But yes they truly say investing is more about patience and conviction and you can’t borrow them.

So even though I kept buying consistent compounder type stocks in 2018 and 2019, I also made frequent buy and sell decisions switching companies based on the news trends and my short term gains. However by 2019 end I had sorted that the companies which I would keep in my ‘long-term portfolio’ and was fully invested but then the came March 2020 crash which crashed my portfolio by more than 40% which made me realize how important it is to be in 10-15% cash to take advantage of any opportunities which may come by. Still on the bright side, since I was invested in ‘coffee-can’ type companies, I knew it was not about ‘how’ but only a matter of ‘when’ these companies would recover. So I completely switched off from following the news and markets for about 5 months to avoid any rash decisions and then by July, my portfolio was in green. But I cashed out bulk of my portfolio without any major profits or losses to avoid facing the same situation again due to the uncertainty in the markets.

At the same time, seeing everyone around me making profits at the flick of a finger, caused me ‘FOMO’ and I invested small amounts for short-term in few pharma stocks in August/ September to rake in some moolah but it made me realize its not worth the anxiety it causes and I stopped doing that after making some thousands. Post that, I decided to finalize an approach for investing since I realized without one it is not possible to survive in markets and it can drive you crazy.

My learnings from the above :

  1. Never buy on tips, FOMO, JOMO, etc. and buy only what you can understand.
  2. You can copy the stocks but you can not copy the conviction.
  3. Most important - Keep things simple in investing and in life. :slight_smile:

So from 2021 onwards, I have decided to follow the below investment strategy for long term horizon (10+ years) and no short term investing/trading.

  1. Have a focused portfolio of 10-15 stocks (preferably around 12).
  2. Return of capital is more than return on capital to have sound sleep and peace of mind.
  3. Doing SIP in stocks every month with equal weighted amount.
  4. Remain invested in these stocks as long as the fundamentals and conviction remain intact.
  5. Buy and sell rarely.
  6. Looking for CAGR of around 12%.
  7. Keep 10-15% cash always to take benefit of any opportunities.

Below is my current portfolio :

Watchlist : Tata Consumer Products, Deepak Nitrite, Whirlpool, Dr. Lal Path Labs.

I am still 44% in cash and plan to keep doing SIPs in the 8 stocks I am invested in every month since I find it difficult to determine the right price to enter but want to continue the investing discipline.

I have been investing in Direct Mutual Funds since 2015 and will continue doing so in future.

Look forward to your esteemed views/suggestions/feedback.



Hi Shobhit
Great stock selection (HDFC Life,HUL,ITC,United sprits,pidillite,relaxo,TCS,Titan)
This stock are buy and hold long and great business to own . They are leader on their sector.
My query:
• Any specific reason we avoided Pharma/Bank-Financial in portfolio .
• ITC,United sprits are great stock but susceptible to govt policy . Now govt consider increase cigarettes purchase rate age to 21 from 18 or Tax increase, this stock take beating and govt milking money from this stock.15% allocation this stock :blush: need heavy conviction.

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If you can avoid FOMO this is a decent portfolio to have. How frequently do you plan to monitor your portfolio companies?

Good idea for this kind of companies.

How do you keep this cash component? Liquid funds, Savings or FD?

Which funds? What purpose does it serve alongside your direct equity journey?

One suggestion: Remain open to tweak your investment philosophy. Buy & hold quality companies is a good starting point. Always invest in quality, but don’t censure yourself to always play the same game. You can spare a small amount to build a satellite portfolio to incubate other ideas (not borrowed conviction). This will help you to go beyond the comfort zone and mature as an investor. Regardless, these things depends on the time you can afford to spend.


Hi Ranjith,

Thanks for the response.

  1. The reason I avoided Pharma is because I find it difficult to understand it. As far as banks are concerned, I am still building conviction in them and may add Kotak Mahindra Bank in future.
  2. ITC for me is more of a FMCG company the way they are scaling up the FMCG business and I am OK giving it a longer run in my portfolio. With respect to United Spirits, I am happy with the way the Diageo management has been on a debt reducing spree and walking the talk and I am betting on the future though I am aware of the risks since it is vulnerable to govt. policies.


Hi Sujay,

Thanks for the response.

I plan to keep checking the developments in the companies I am invested in, once in 3 months.

I keep the cash in Savings account.

I am invested in UTI Nifty 50, UTI Nifty Next 50, Parag Parikh LTE, Mirae Asset Emerging Bluechip and Motilal Oswal S&500 Index fund. Since I am still learning the ropes of direct equity investing, I invest in Mutual funds to continue the investing discipline and not letting lapses in my judgement in direct equity investing denting my early retirement portfolio but I don’t want to shy away from investing directly as well.

Thanks for this suggestion. I am still learning and will definitely work on having some satellite bets in future to expand my investing horizon and learning something new.



Hi Shobhit, Please refer to the below video to understand Pharma Space.

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Hi Shobit,

I like to invest in stocks that have the potential to double in five years. My current picks are Reliance, SRF*, Pidilite*, Muthoot, Bharti Airtel, Hindustan Foods, Dixon, Deepak Nitrite, Poly Medicure, Tata Elxsi*, Alkyl Amines*, Naukri*, The one with * I still need to buy. My aim is to get 15% CAGR . I am retired and I sell covered calls to meet my living expenses. .

1 Like

I forgot one PI Industries

Hi All,

Please find below my current portfolio.

Stock Sector Buy Price Allocation %
HDFC LIFE BFSI 632.53 6.62
HUL FMCG 2161.60 7.54
PIDILITE Chemicals 1468.79 8.97
RELAXO Consumer Discretionary 680.11 5.34
TCS IT 2485.21 16.48
TITAN Consumer Discretionary 1087.64 8.54
ITC FMCG 208.65 7.83
HDFC BANK BFSI 1513.55 3.17
CASH 23.47

Exits : None

Additions : HDFC Bank (May-2021), Tata Consumer (May-2021)

Reductions : ITC (sold some in March 2021) to switch to SIP mode but still forms around 8% of my portfolio. Switched to SIP mode in April 2021.

Both the stock and Mutual fund equity portfolio have been performing well thanks to the run-up in markets.

Current investments based on Cost Price : 75:25 (Mutual funds: Stocks)

I had started my journey in 2017 in the markets by ‘speculating’. In 2017-2018 I suffered too much loss but one fine day I booked and paid the fees. And then started afresh on 01-Jan-2019 with my current investment approach and it has been a good experience thereafter.

XIRR from 01-Jan-2019 until 02-Jun-2021:

Mutual fund portfolio : 17.7%
Stocks : 24.4%

I know the returns will taper down gradually and I am fine with that. My objective is to do as little decision making as possible with the portfolio and have 12-15% returns over the next 15-20 years without sleepless nights. I am only comfortable holding a maximum of 15 stocks. For me, return of capital holds precedence over return on capital. I invest around 40% of my salary in Mutual funds every month in SIP mode and will be increasing it to 50% from next month to maintain investing discipline.

I follow a SIP mode for stocks as well but due to the run-up in Titan, Relaxo and Pidilite I am a little uncomfortable and stopped fresh investment in them. TCS forms the biggest part of my stocks portfolio and a little above the 15% threshold I have but will not be selling any shares. For HUL, I invested around 2100 levels but since the valuations are a little too stretched, I am not investing any fresh money since last 3 months but will not be selling either.

I am continuing SIPs in these stocks currently : HDFC LIFE, TATA CONSUMER, UNITED SPIRITS, ITC, HDFC BANK.

Cash still forms 23% of my stocks portfolio and I am finding it difficult to identify where to invest due to the current nature of the markets. Any advice will be welcomed.

Please feel free to share your opinion.



A good cherry picking of stocks who are top entities in their respective sectors, as all are in a kind of organized (becoming one at least) sectors can expect them to become bigger/consolidate in many more years to come. Would suggest you to add some more to increase/diversify the exposure to more sectors :slight_smile: All the best !