Which stocks should be part of a conservative long term invester portfolio

I have never read any book on stock investment till date.I wish I could have read those about 30 years back (but Now I would not read ),after having been in market for three decades and after doing lot of errors ,I would like to share few of my experinces ,but those will be beneficial to only those who are intrested to play safe with CAGR returns of aprox 15%.These views are just for discussion and I dont take any responsibility of any results coming out of these 1 Go for transparent and ethical managements and stay away from managements who are in news for wrong reasons .Honesty is rare quality, so go after that .2 Go for companies whose products are visible in public use and are admired for quality at right price.3 Go for compnies which can grow in(top and bottom) double digit in atleast 7 out of 10 years consistantly 4 Look out for those compnies which keep on increasing dividend over a period of time.5 Look out for those compnies which can grow with internal accurals with out coming to market for funds either equity or debt .6 Look out for compnies which keep on coming out with modern products to remain relevant in future 7 Look out for compnies in new emerging sectors 8 See that market keep on recognising performance of company.9 Dont afraid to pay market price (as you may find these at reasonable levels only during market crash) ,at the most you can scater your buying over period of time to average out your buying,never forget to add more on deep corrections.10 Dont sell till either you need money or company start faultring on above mentioned points.11Look out for compnies whose market cap ranking keep on improving.12 Always keep atleast 5% cash to cash on market corrections.13 Dont keep more than 20 ( at the most 25) Stocks in portfolio.14 Avoid stocks which fund managers are avoiding,it may be with reasons as they are full time experts .15 Before adding any new stock ,select the non performer to be shunted out ,any stock which dont outperform nifty in last five years must be shunted out ( except if it has has out perform nifty in last one year)16 Run portfolio like cricket test match where batsman build innings ,never try inter day trades ie avoid 20_20 Match in investing.17 For investing in unknown and smaller compnies invest in good small and mid cap funds,you can invest directly in bigger mid cap and large cap with proper home work as lot of information is in public domain and are covered by media .18 Avoid PSU as Govt which failed to give good governess to country can not perform in competion with pvt sector 19Avoid metals ,commodties,utilities including telecom as you these need right timings ,which only experts can do .20 Do your own research and compare it with market experts view,if both are on same platform ,idea may be worth considering.21 Never try to be bold to swim against market direction,as trend is the best friend.You may be knowing few persons who had made money against trend or in unknown stocks ,but there are millions who lost in doing so( I was among those for my first 10 years ).22 Always invest some portion of your investment in good multicap diversified mutual funds to compare yourself ,if you are not able to beat mutual funds increase allocation to funds ,if you are able to beat mutual funds ,you can still keep 20% of your funds to keep on competing with best fund managers.If you are not able to beat fund managers ,you can invest 2/3 with funds and can keep on sharpening your skill with 1/3.,You can keep on increasing direct imvesting when start generating competing returns with funds.

 

Hi. Amazing post. Glad that you shared your 30 years of experience with us!!
I agree with almost all the points that you mentioned here. Further, I have also written a similar post regarding the fundamental approach to select a company to invest here: How To Select A Stock To Invest In Indian Stock Market For Consistent Returns?- which can also be useful to the readers.
Again, thanks for sharing the post!

 

@Kritesh Abhishek
"Many a times, the accountants use the financial loopholes to hide the debt in their annual results. However, if you read the financials minutely, you will be able to find these debts, as the financial sheet always needs to be balanced."

Are you able to throw light on how debt is hidden by creative accountants and how can such hidden debts be discovered.

thanks

 

By the way dear Kharb, which stocks do you wish to invest in

 

Very insightful article. Thanks for sharing