Great time to make fundamently strong blue chip portfolio

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by kharb, Sep 2, 2015.

  1. kharb

    kharb Well-Known Member

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    When market goes down,it is painful to investers.But for those who can remain invested or has surplus to invest more,this is not as bad as it looks.This is time to come out of duds,stay away from small or midcap poor fundamental stocks,specialy those which are being recommended by experts of only present recent bull market.These so called trapped experts try to get rid of their stocks by repeatedly giving repeated buy calls, in which they have been speculating.Although no harm to listen experts recommending sectors and buying blue chips as manupluting of these is difficult.Stick with A class shares,preferably your portfolio skewed towards all weather blue chips of NIFTY.More over you can invest increamently more and more in this catagry if market stays lower or it go down further.This is the stretagy which is proven one since long as the history of stock market itself and one can invest without losing his sleep.So remain invested in top qualty largecap steady performers to benefit out of blood bath on street.This is time to buy those large cap blue chips ,which you always like to have but could not buy due to over price.When market will turn up,these will be first to bounce but mid or small cap are different every time. Now hold your nerves and go shopping in this Great Pre Diwali Stock Sales of Blue Chips.HAPPY BLUE CHIP STOCKS INVESTING.BYE BYE DUDS.
     
    Last edited: Sep 2, 2015
  2. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    EXCELLENT ADVICE! WE HAVE TO FOLLOW THIS!
     
  3. NAMASIVAYAM

    NAMASIVAYAM New Member

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    Good advice in correct time.Pharma stocks are good to invest in these downtrend market.This sector largecap stocks have given average seven time returns from 2008 to 2015 and mid and smallcap stocks have given 15-21 time returns from 2008-2015.So do your own research whether my posting is correct or incorrect and decide thereafter.
     
  4. Dreamer1214

    Dreamer1214 Member

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    Correction is imminent in any markets, and wise are those who use the right opportunity to push in their investments.
     
  5. NAMASIVAYAM

    NAMASIVAYAM New Member

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    okay dear dreamer1214.
     
  6. kharb

    kharb Well-Known Member

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    Market is correcting.Bad for traders who had positions in duds and favourite poor qualty stocks of new class of experts.But for investers this is time for investing as many of blue chips are trading near to fair value or expected to fall near to fair value.Those who are very long term buyers like me,they can go and invest around 25% of their investable surplus in next 4 weeks slowly without any second thought.This is time to invest in stocks which we always love to buy like HDFC bank,Kotak Bank,Indusind Bank ,Axis bank,Infosys, L&T,Sun Pharma ,Lupin, HUL, Asian Paints,ITC,Housing finance companies,Tata motors, and list is unending including Qualty Mid Cap .U can add your favourite qualty stocks with strong fundamentals.But some new investers tries to buy or average out those poor qualty stocks which have fallen significantly from their peaks and they along with their recommending gurus are trapped .No fun in repeating the folly again and again.I had already mentioned stretagy for long term investers of more than five years But still if you are of type who want to play this fall for medium term upto two years,you can still buy larger names like IDFC,ICICI bank,SBI,Axis bank,Lic housing ,L&T ,Ambuja Cement ,and Tata motors. These stocks have gone down below their fair value and can be played by medium term investers for safe bounce back.So they can be accumulated slowly.But this is certainly not a time to sell fundamentally strong qualty shares unless you need money for emergency. Invest 25% now,and rest 75% with three instalments on every fall of 5% if it happens.Happy Qualty Investing,Bye Bye Duds.
     
    Last edited: Sep 7, 2015
  7. stockguru

    stockguru Active Member

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    I agree this is probably the best time to buy at least allocating some of the liquid one has in stocks. There is a sale going on in the market. Buy your favorite blue chip company which you always wanted to buy but couldn't do it because of expensive valuations. Happy Shopping :D
     
  8. MoneyWorks4ME

    MoneyWorks4ME Active Member

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    Enjoyed reading the conversations. Time for cherry picking :)
     
  9. kharb

    kharb Well-Known Member

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    Don't sell Quality Blue Chips stock .Whenever market is down many Bear Mascot like Shanker Sharma will suddenly reapear and start beating Doom Drums.No doubt we need to be cautious during troubled time and should stay away from duds ,some of which might have become flavour of the season due to repeated recommendation from interested quarters.But holders of quality stocks should not panic.Like Film Sholey ,Doom drum players like Gabar Singh will terrorise us considering as Ramgarhwalo.But don't be afraid.Remember Sholley itself ,Jo Dar Gaya,Samjho Mar Gaya.I have been hearing Shanker Sharma since long and he has some hits also.Predicting about RIL under performace has been one of his hit as pessimist..He was also right in his bullishness about Tata motors some year back.So when Shanker Sharma the Brand Ambassador of Pessimism,have reapeared again with his Doom Drums ,we just need to be cautious than fearful.Just stay away from poor qualty ,that s all.Qualty is fearless.Shanker Sharma has been giving his views ,may be from time NIFTY was just 100.Quality don't listen Shanker Sharma .NIFTY has multiplied itself by 76 times,by ignoring him.Shanker Sharma has been wrong many times like all of us.Even if we take some cases of recent times he said as intrest rates will come down,so market has to go up.He even said that highly leveraged bets will benefit most due to same reasonNot long back,he recommended JP Associates at 70,but souhtward journey of JP startrd after that.Long back he said that PSU banks are unique franchise with govt guarnty and good dividends. So with great respect to Shanker Sharma I shall mantain that if you are chicken hearted,atleast please don't sell your qualty stocks, as they are silent multiplying machines.If you are brave heart,start preparing list for purchase of blue chip stocks when Shanker Sharma is busy in beating Doom Drums..Invest slowly but surely.Quality stocks always beat their previous highs.Quality just reverse back slightly like a long jump player or Tiger before its next big jump.FII are selling,they are guest and don't expect guest to be permanent New guest wil come.But we as Indian invester have to stay invested like home owners.We have few things in favour, which will ensure that we have to go on.We are still underdevolped,our wages are still competitive ,our public don't have high debt so are strong consumers,ours is not export oriented economy like China,we are a democracy with reasonable regulators and courts ,we have govts which do their best under democratic constrains and last but not least we do have best of enterpenures,more over corrections has always been best time to invest.
     
    Last edited: Sep 8, 2015
  10. kharb

    kharb Well-Known Member

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    In last correction added one new stock Tata motors in portfolio.Added more quantity to existing L&T,HDFC bank,Sun Pharma,Axis Bank,Infosys ,Indusind bank. ALWAYS BUY ON PANIC FESTIVAL DISCOUNT SALE. These are far better than discount sale of E commerce companies.
     
    Last edited: Sep 20, 2015
  11. jacobvacha

    jacobvacha New Member

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    i repeat my experience that at height sell blue chip or anything and wait in the side line
    to get two way profit.( No missing bus which i felt too but later i found the same bus waiting for me months )

    selling at high and again buying at low at similar correction every year where blue chips too fall below 15%
    i donot know market players not ready to accept this for lots of reasons
    yells long term and hold it tight ( loosing interest and opportunistic value)

    ex ITC went to rs409( anyone who track it will understand that the counter is highly volaitile)
    now 318( iam not talking after seeing the price at 318 but 409 is a high price which cannot be substained if one luk at the behavioral pattern of the stock)
    Mothersunsumi cmp 283( went up to 395 ex bonus which is a v high price)

    Hindustan lever cmp 798( went to979 . a stock which all fund mangers keep as a defensive counter . This has gone down by 18.48%!!!

    _
    further not a bad idea to catch gud midcap and small cap when market moving and exiting at reasonable profit
    ---------
    Sell stocks which are not moving and catch moving ones

    iam practising all the above except first one which i learnt badly this time
    while concuring to the view that iam a long term holder of the same stock and it prospects but dispose to enter at low

    sincerely
    Jacob mathew
     
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  12. jacobvacha

    jacobvacha New Member

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    Dear viewers
    'According to him, selling right is more important than correct buying. He says it is necessary to keep a lot of cash. "We keep an average 10 percent cash in our portfolio," he says. "

    What i was saying here i saw in money control interview with ramesh damani of govind parkh
    of govind parikh securities.

    Pl listen
     
  13. Srouta Mukherjee

    Srouta Mukherjee Well-Known Member

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    Very sensible advice by expert
     
  14. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    In my view both " Buy & Selling "or "Entry & Exit " both are very very important ....
    in that case only profit will generate ...
    that is called market timing and moreover if any person having panic he will face entry problem
    because he is waiting in a crash or correction for further price fall , If any person having greed
    he will face exit problem because he is waiting for more price growth , he is not willing to book profit in a big rally also ....

    ex: one of my friend bought one good company at Rs. 300 long back ....with in 2 years it went 1500 Rs.
    entry is good ..i told him sell that stock because stock valuation is abnormal and you got very good return .
    but my friend told me , every week it is raising 50 rs. so next 2 months it will cross Rs. 2000
    at last market crashed in 2008 and stock down to below 1000 rs. level ...i said please book profit ...but my friend said at least Rs. 1400 to 1500 reach i will sell this stock ...after 3 months stock down further and reach
    Rs.600 and at 2009 middle it reached to 400 Rs. .... i said it is best time to buy please add some shares ...he said it is a waste stock that's why it is falling continuously i will sell entire stocks and close my demat account

    after that next 2 years it reached again Rs.1000 levels ..... my friend realized his mistake at that time ....

    In my view we must keep an average 20 percent cash in our portfolio ...change according to market condition
    5 percent either ways ....
     
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  15. SUNNY

    SUNNY Member

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    Rightly said, we have to book profit periodically to generate profits
     
  16. kharb

    kharb Well-Known Member

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    Added some more of Ultratech Cement .Already in portfolio ,but very less ,less than 1%.Cement sector has nothing to do with China,Greece or global turmoil. Pure Indian play.My minimum benchmark is to keep any stock at least 1% of portfolio and maximum 10% with buying.But single stock can go beyond 10% without my further buying..No hurry ,will add on this on beaten down days only.
     
    Last edited: Sep 29, 2015
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  17. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    Dear kharb ,
    Ultratech cement is a very good company ..... your analysis also very good

    very good choice ...... keep it up

    ALL THE BEST
     
  18. ajay6uc

    ajay6uc New Member

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    Kharb,

    I like your words : "Quality are silent multiplying machines" for example HDFC bank, HUL, NESTLE, ASIAN Paints etc people have never lost money it if they bought at right time and move slowly upward year on year.

    But our problem is we need money fast that's human nature and bad quality specially turn around companies are like this, ppl hope they will soon make money on this and buy on any good news abt company on news channel or any recommendation by so called smart analyst. I saw Sudarshan Sukhan on CNBC Tv 18 and remember 7 days back he was bullish on NMDC at 104 see the price today 92 so many ppl might have been trapped. I also remember one person on CNBC awaz "stock on demand"called and has query abt Amtek Auto and he was telling that DD Sharma last year recommended this stock that means ppl are getting trapped as after they buy it they search for DD Sharma what to do now but don't find them.

    Any how this will continue like this. OnlyT problem with quality is you make money very slowly but you make thats most of the time is sure.

    I like Basant Maheshwari, Ramdeo Agarwal and Ramesh Damani these ppl at least tell to stick with quality as only bad times these companies will protect you from falling knife or nosedive type situation. BM after Hawkins Cookers case does not recommend MidCaps and now a days on channels only tell to stick with HDFC bank, Asian Paints like such companies. Good strategy because based on these guys recommendation ppl invest so they have to be careful in public forums. Latest one Granuels also he told tha its his just advice but before buying research yourself. Playing safe now a days, because of Hawkins cooker he has to shut down his advisory services.

    Nestle's Maggi revenue is 20% around but stock has fallen only 15% from peak and still enjoying high PE and what happens to Tata Motors with china sale comprise of 24% got the figure from news channel but the price of Tata Motors fallen by more than 50% from peak and PE is in pathetic shape. So the person in nestle would not have lost much but in Tata Motors might be crying.


    Good to have guys like you and RamaMurthy having good source of knowledge ! keep sharing it.

    Thanks
     
  19. RAMA MURTHY SASTRY CHALLA

    RAMA MURTHY SASTRY CHALLA Well-Known Member

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    Dear ajay ji ,

    In stock Market business majority of people depend on Tips or friends suggestion it is not wrong
    they may correct some times but not all time ...people based on their luck almost or emotional factors
    like greed , panic or confusion , doubt etc .....

    They finally loose money and blame others like ,ex : Government , Finance Minister , RBI Governor ,
    Tip providers , stock broker etc.....

    TIPS = PITS

    but our primary mistake is dependence on others in trade in entry and exit .....

    In my view you find any great successful traders or Investors ..... they are not tip providers
    ex: rajesh jhunjhunwala ji , warren buffett etc ...are not giving tips .....
    any successful trader they use their knowledge on his personal trading or investment ....

    Don't depend upon TV channel tips

    I never follow TV for trading
    Ex : If i buy some company share at current market price ....
    after buying one Analyst says it will go down i am giving sell call on that stock ...
    i will not panic or any emotional change ...because i will enter with full conviction and strategy also

    so made your self with your investment model ....

    my suggestion is Don't invest in a single deal .... slowly invest according to correction ,
    because we don't know depth of ocean .....

    ALL THE BEST ......
     
  20. kharb

    kharb Well-Known Member

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    I am in stock market for last three decades and tried many models.I even tred to buy stocks recommended by great Indian investers but unluckily lost in most.But in last, Quality Model suited me.I invest in good quality blue chip stocks with reasonable growth and if possible in across sectors. I have also decided never to invest in PSU , regulated,metals ,airlines and commodity stocks..Although Quality Blue Chip stocks are not always available at desired price,but I still buy.But I do it slowly like SIP.But when market is near to all time high I stop investing ,but don't sell and remains on hold.But when market cools down I start accumulating again.I mostly keep large cap quality stocks But even can invest maximum upto 30 % in very superior small or mid cap,but those should be leader or must be in catching mode of leadership and must be growth stock.If I don't find very good small and mid cap stocks my self ,I invest in small and midcap funds.In this way I have sound sleep with Quality portfolio and every decline is buying opportunity .Now I am happy with my style.Till now it was buy and hold with some selling of non performers and booking loses and investing that in performing stocks.May be in future I may start booking some profit when markets are near all time high to deploy that again in correction.But this expertise I would like to devolpe in future.
     
    Last edited: Sep 29, 2015
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