Hi Varun
I totally agree with your stretegy however diverified depends on stage of bull Market. I started investing in Oct 2013, though I am in markets from 2005 however due to huge gains in Futures, long term investing did not attract me. Started building my portfolio in 2013 with so called dead stocks, suzlon, madhucon, rattan power, ncc, bought yes bank at 270 was best decision. All investment were concentrated & theme was power reforms. Strategy paid off in Madhucon where I made 5 x gains, bought Gayatri projects & by God’s grace made fabulous 5x return in mere 1 year. Capital has been multiplied by 7x in 3 years. My strategy is to invest 40-50 % in 3 stocks, than 30% in 10 stocks & remaining 15% in 7-10 stocks which are newborn in portfolio. Start churning off stocks wherever I feel valuations are exorbitant & incrase allocation wherever I think discount is playing out.
I am rotating quite sharply if any fundamental change is occurring, 6 months ago 25% portfolio was in Pharma, now cleaned all due to pricing pressure in US. Below are my holding
- RBL Bank
- IDFC Bank
- Ujjivan SFB
- Kiri industry
5 meghmani organics - Balaji amines
- Sagar Cement
- HSIL
9 HIL
10 Force motors
11 SpiceJet - Gitanjali Gem
13 emmbi industry - LEEL electtical
15 garware wallrooe
16 Virinchi