This is my portfolio with the following allocations:
Allcargo Logistics (3.6%)
Aurobindo Pharma (3%)
Dilip Buildcon (4.5%)
DCM Shriram (2.4%)
Fineotex Chemical (4.3%)
Future Consumer (4.8%)
Indo Count (6%)
Indian Hotels (3.5%)
Jayant Agro (2.3%)
Minda Industries (4%)
Motilal Oswal (3.6%)
Zee Media (4%)
I would request fellow boarders to kindly give their valuable feedback. I am a beginner in stock market and would love to learn.
Still working on asset allocation and wish to bring stocks down to 15 -18.
Please share your views.
It will be useful if you can share the logic behind choosing each company in the the PF & the allocation made on them. eg: I see that Britannia has 20% and the largest allocation but ITC only 3.6%
To be honest, I don’t don’t have a written rationale for these. I started investing 6 months back, and wasn’t really that rigorous in my analysis. For blue chips like Britannia, Maruti, Mahindra etc. I looked at their strong past records and the proven moats they have. But for some other names, I just heard the name in some articles or bought it because some well-known ace investors did.
But after reading some books, I regret my method now and want to improve in my investment philosophy. And I feel rebalancing my portfolio to fundamentally strong businesses should be my first step. I would really appreciate the views of some experienced people like you and learn.
I am no expert and a learner like you only. My only submission is read as much as you can about the companies & sectors you have interest in, starting with AR’s. VP forum is great place to learn about companies and investment methods, so you can search and read about those. Read up on books and articles on investment. In short read, read, read like crazy
In my humble opinion, you’ve invested in decent companies. But, there definitely is scope for pruning your list to manageable levels. Holding too many stocks will do more harm than good. It’s difficult to assess and monitor the performance of such a wide spectrum of businesses. Instead, consolidate your portfolio and stay invested in stocks where you possess maximal conviction.
Also, mutual funds may not be a bad idea if you’re not keen on regularly examining the performance of the businesses you’ve invested in.
I totally second your opinion and that is exactly the whole point of doing this. I want to prune it and come down to say 15 companies. What would be your suggestion as to which ones to quit?
I, personally, prefer companies that are available at low PE, BV, cash flow and dividend multiples. Now, it depends entirely on you what valuation you’d be willing to pay for a company. It’s entirely subjective. Some prefer growth companies some prefer value. There’s no right or wrong. But, I would stay away from cyclicals and commodities. I don’t possess the skills to track them. And, if they’re not sold at the right time they could be massive wealth destroyers.
If you would like to prune down to 15 companies, I would advice to dispose cyclicals(as it requires a different skill set and very difficult to master), hotel sector and HGS (purely based on last 10 year performance which is generally a good indicator of future performance).