I have attached my current portfolio. I have built this portfolio in last 6-7 months. It has blend of growth and value stocks. Most of the growth stocks being chosen from this forum based on various technical entry points. But the portfolio has too many stocks (~50). Though I am not proud of this fact, at the same time the portfolio has given reasonable returns so far. But I would like to make it a 20-25 stocks portfolio going forward. So in this regard, I would like to take your opinion on how to go about it . Also please let me know if there is any stock which I should absolutely get rid of from 1-2 years perspective.
My expectation from the portfolio is to generate 15-20 % returns on a yearly basis.
You have a good set of stocks, but I feel there are two many of them. Unless you are a professional full time investor, it will be hard to track activities around all of them.
Some great investor has said "stocks are like children, have as many as you can manage ".
Looks good for a start. Keep thinking/reading more about each stock in the portfolio on an on-going basis. Over time you will realise their relative merits/demerits and it will become easier to separate the wheat from chaff. Keep dropping the weaker ones , adding to the stronger ones.
Thatâs part of the journey to become a better investor. Good luck !
Try to find out what percent of your net worth is your equity portfolio and then check if the quity corpus is still small or about 10 lakh for a typical retail investor. This will help you in deciding how many stocks you want to keep and whether it is 25 or 10 or 5.
Among the names, I do not like Sesa Sterlite, ILFS Investment Managers, NMDC, PNB, BHEL and Balmer Lawrie. I would sell out from these and add to Asian paints, Hawkins Cooker, Bajaj Corp and Sundaram Finance (not necessarily in that order).
I had close to 40 stocks in my portfolio and now I have managed to bring it to 20. Here is the latest portfolio with respective % allocation. I am not getting any idea how to reduce it further as I am not able to find strong reason to sell any of these and allocate to others. I really need your advice here. Do you think with this diversification will I be able generate greater than 25% returns?
My portfolio has 10 stocks from your original list ! I am in the process of makeover too and your reasons for exiting some of the stocks will help in my decision making. Can you please share the reasons for exiting, specifically - Engineers India, Biocon, Navneet, Cera?
Engineers India - It was a bet on value investment with sufficient margin of safety. But then I realized that this margin of safety has no meaning till the real bottom is found
Biocon - I had entered around 350⌠so exited booking the profit around 430 for better opportunities in Shilpa & Ajantha.
Navneet - Opportunity cost⌠so thought of entering after couple of better quarters.
Cera - Not too convincing margins in last two quarters⌠so may enter if there is considerable correction or with better results in future.
Thanks Hitesh for the giving a positive outlook for this portfolio
One more question⌠I have very little cash left in the portfolio as of now⌠Do you think any of the stocks in my portfolio qualify for booking some profits? Or do you think I can take some risk and continue holding on to these till at least elections are over and take a call after this event?
It is thematic and it covers a lot of ideas in one shot.
But do you think it is necessary to play with such stocks? I mean do you have to invest to find that. Good that you didnât get into commitment bias.
The main thing here is âEvery investor should have a replicable profitable strategy to be consistently successful over long-term.â Take it buffet or Lynch or Graham or Livermore. Otherwise You will be in the same condition with every stock you face with. Anyone will benefit if they start building a strategy for picking stocks and making portfolios early on in their investment career. This is especially important if you are investing for Kids education or a daughter marraiage etcâŚ
I think everyone has a lot to learn from senior investors like you and thanks for sharing your thoughts.
Unfortunately, I have learned the basics of stock market investment only in last 2 years though I started earning 12 years back. I had made many mistakes in the past. Only good thing was that in the past I had never taken stock investing very seriously so whatever losses I encountered did not effect my normal life.
In last two years I have given some serious thought about investing in stocks. The credit should go to this forum for whatever real learning I had in recent times and most importantly for giving me the confidence to consider this option seriously. Still a long way to go⌠but I am slowly getting the confidence that at least I am in going in the right direction.
Yes. My main goal is to make investing simple. I donât even like to use the word âInvestment.â A more intuitive word is âprofitâ. That is the theme of my upcoming website also.
I needed some guidance from senior investors on how to add to the existing positions while prices are moving up. I am referring to good quality companies like Ajanta, Alembic Pharms, Page, Poly Med, Gruh etc here.
I was thinking of following this approach:
)- Ensure that RSI <30 and CCI has crossed -100 from below
)- Ensure that the average cost of the stock is not above 200 Day Moving Average
Took the first step towards addressing this by simply taking the stockâs 1 year Forward PE as a factor to determine my entry point and comparing it with the Fair PE, Potential PE band. Hence, if the market gives you that opportunity due to any reasons and the stock looks cheap on a 1 year forward EPS basis then it becomes a relatively easier decision to take.
I did this in last 2 weeks for Avanti Feeds and Ajanta Pharma as they look good on 1 year Forward PE basis.
I would love to hear views of other board members on your question.
Please find my current core portfolio. Please suggest if any churning needed here especially considering the recent run up in some scripts. I am feeling comfortable with this mix though I am not sure if I will be able to beat market in short term. Also another concern is that I have very small share of quality large caps in my portfolio currently.
85 % of my current portfolio is in 15 stocks as - Ajanta, Avanti, Shilpa, PI, Page, Kitex, Symphony, Control Print, Cera, Repco, MPS, Anuh Pharma, Mayur Uniq, Premco Global, Atul Auto. The allocations are anywhere between 3-8%.
I have 1-3 % allocations to stocks like Torrent Pharma, Granules, Ambika, Kaveri, Pokarna, Ratnamani, TCPL Pkg, Chamanlal Setia.
My goal is to reach a consolidation level where 85% allocation will be in top 10 stocks and remaining for smaller(1-3 %) allocations. I an trying for this consolidation but not yet there completely.
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