Pls review my portfolio

Hi,

Can you folks please help me review my portfolio. All these stocks were bought in last 12-18 months. I am really new to trading hence requesting the experts here to please review my portfolio. I have quoted the entry price and logic behind the entry.

1. City Union Bank @ 49.90 ( 1-2 yrs horizon ). Did some basic fundamental analysis. Did not believe it will go this current levels.

2. IDBI @ 73.90 ( bad bet. waiting to recover my losses ). Entered with intention that Infr boost by Modi govt and Make in India will benefit this stock

3. Infosys @ 2200 before split. Quality IT stock. Dividend stock. Investment horizon very long term

4. Reliance @ 906. Investment horizon Very long

5. Praj @ 70.50. Debt free company. Investment horizon 6-12 months

6. TD Power @ 309.45. Company located in outskirts of Bangalore. Investment logic : Know some one working there in sales dept. He sounded very positive about the growth. MD interview on CNBC was impressive. Fundamentals are also strong. Big houses have invested in this stock. Inv Horizon ( 12-18 months )

7. Rain Industries @ 35.36 Just bought based on news of Mohnish Pabrai entered this stock. No real thought process. This is my high risk stock bought purely from trading point of view.

 

You don't have to listen to a word I say. Here are my thoughts anyway - i have nothing better to do

1) If you are creating a stock portfolio for yourself and are not an experienced investor, start by identifying sectors first

For instance, you may want to invest in say:

Pharmaceuticals and Healthcare (people will always fall sick, need medicines etc, go to hospitals)
Auto and Auto Components (two wheelers, four wheelers, trucks, who makes the brakes, glasses, etc?)
Banking (They fund everything, who funds the most with the best margins, who lends to the least number of defaulters etc)
Cement/Capital Goods/Infrastructure Plays (who are biggest, the most profitable players, are they neck deep in debt?)
FMCG /Consumer Discretionary Stocks (People need food to eat, clothes to wear, fashion items, hygiene items, which company reaches the most people etc)
IT and IT related (the world runs on software and hardware, who has the best ideas, the biggest clients)

Now you can decide to invest about 10%-20% in each sector depending how much defense you would like in your portfolio. More defense might mean more FMCG, Pharma, IT etc.

2) Now for each sector, find 2-3 companies you may want to invest in.

A good starting point is to identify the leaders.

See if you can get your hands on some brokerage reports to get an introduction to the company. Brokerage reports are easy to come by and offer commentary on company prospects for growth. Visit websites like this one or moneycontrol or individual broker sites. Read the reports and see if you understand rationale behind the stock picks.

Now check if any institutions are holding the stock - that can be an added source of comfort. You may want to check out the balance sheet and profit and loss records of the company. These can easily be found on BSE website etc.

3) Avoid stock tips or friend recommendations or market guru recommendations. They can be starting points but they are only that - starting points. Research the stock.

Now if all this sounds like too much work, buy a couple of diversified mutual funds.

Cut your losses on the above portfolio. If you have any gains, use the losses to offset the gains. Start with a clean slate.

Disclaimer: All that I have said is simply my personal opinion. I am neither qualified nor capable of evaluating stocks. I come here to see if I can learn anything useful. Listen to me at your own peril.