Performance of Top10 Outlook Business recommendations

Hi All,

As some of you know, Outlook Business in its Jan15 edition recommended Top10 stocks for 2015. Below is the 6 month (Jan15-Jun15) performance of these stocks.

As you can see, buying 1 share of each of these 10 companies on 1st Jan15 would erode the capital by 24% on 30 Jun15 !

An another way to evaluate these 10 stocks will be to give equal weightage to each of them (lets say, putting Rs100 into each one of them). This approach results into 6% gain (i.e. Rs 1000 grows into 1060). In the same period Sensex has grown by 1.8% !

I, hereby, invite thoughts/pointers from all of you

@Meenakshi Razdan @stockguru @Anita - please share your valuable thoughts

 

I usually see the performance of individual stocks as compared to the whole portfolio. Different companies have different scenarios and some might be in a sector that is having a bull run and some might be in a sector that is struggling right now. So you need different time frames for different companies. As an example if you are betting on a struggling turnaround stock you need to give it more time than an already well performing company.
Regarding the weightage I think it would be equal weightage. However Joel Greenblatt once talked about value weightage which is essentially different but interesting form of putting weightage on the stocks. The value weightage works by the cheaper something is the more weight it puts into it. Below is the video in which he talks about Value weightage and all other stuff regarding fundamental value investing. Hope you enjoy the video.

 

@Meenakshi Razdan @stockguru thanks a ton for sharing your ideas It all makes so much sense

I actually had done little bit of research on all these 10 companies in Jan15 after reading the magazine. And I finally concluded to buy NONE of them ! I foresee one challenge or other with these companies which hinder the visibility in earnings that W Buffet advocates for. For instance, Career Point operates in a very competitive market. Coal India faces all sorts of govt. regulations/bottlenecks etc etc.

The stocks I finally entered in Jan15 were Ipca Labs, Lupin, Capital First & Dewan House. Though 6 months is very less time to evaluate performance, I am happy with the decision I took

 

@pradip
It is nice that you do an indepth research on the companies. A nice place to look at the risk factors might also be in annual reports of these companies. Under Management Analysis and Discussions, companies usually list out risk factors that could hamper their growth. Although this is straight from company so it can be biased at some times however well managed companies having good managements are usually transparent about their businesses and risk concerns. A thing to note here is that most of the companies would be facing some kind of challenges it is here that the experience and quality of management comes into picture. Good quality managements have better odds of overcoming challenges.

 

@stockguru yes, I read the annual reports of the companies I follow I have also started following the blog tankrich which you mentioned in one of your posts !

So, which stocks have you invested in ?

 

madem ..please you give best 5 stocks for 3 year period

 

Sorry I do not disclose my personal positions here nor do I give any specific buy/sell calls. Most of the time my opinion is just generic about the company or a particular sector based on the fundamentals and I strongly recommend everyone to do their own due diligence and/or consult with a certified financial adviser or an analyst before investing.;