My portfolio- Suggestions and advice please

Discussion in 'Ask A Query About Your Stock Picks And Portfolio' started by ashujeet, Jun 3, 2015.

  1. ashujeet

    ashujeet New Member

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    I have a short portfolio of just 6 stocks, as given below, which I intend to hold for the next 15-20 years:-
    Stock & % holding
    (i) Amara Raja Batteries- 22%
    (ii) Motherson Sumi- 10%
    (iii) Credit Analysis & Research- 18%
    (iv) Yes Bank-18%
    (v) Suven Life Sciences- 16%
    (vi) Berger Paints- 16%

    I have most belief in the Auto Ancillaries sector hence 2 of the 6 stocks are from that sector. Experienced members of this forum are requested to provide their valuable suggestions and comments on the above portfolio and also what would be a realistic CAGR% after 15-20 years from the above portfolio?
     
  2. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    Your choice of stocks is impeccable. Each stock is a market leader in its field, with excellent management pedigree. They have done well in the past and can be expected to do well in the future as well.

    The only thing that I worry about is that in a concentrated portfolio of this type, there is no room for error. If one or two stocks go bad, they can take the entire portfolio down. But, of course, that is a personal choice.
     
  3. ashu.bhattacharjee

    ashu.bhattacharjee New Member

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    Thank you Mam, for ur crucial advice. Do you suggest I should increase the no. of stocks to at least 10, or add any more sectors, so as to diversify?
     
  4. Meenakshi Razdan

    Meenakshi Razdan Administrator Staff Member Moderator

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    One other relevant question to consider is how much of your net worth you have in these stocks. If you have a small portion, say 25% or so, in equities, then, having a concentrated portfolio will not hurt you much because you will have other resources to fall back on.

    However, if you have a major part of your capital in stocks, then such a concentrated portfolio is dangerous because of the impact that even a single stock can have on the net worth.

    In that case (of one where a majority of capital is invested in stocks), it is better to balance risk with reward and have a somewhat diversified portfolio of between 10 to 15 stocks. It is also a good idea to spread the bets amongst different sectors instead of concentrating on only a few.
     
  5. stockguru

    stockguru Active Member

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    Are you planning to hold just these 6 stocks for next 15-20 years or are you going to add more stocks in your portfolio. If you not planning to add anymore then I suggest you that you do a nice in depth research of each and every company at least once or twice a year since the risk is too much as your portfolio is very much concentrated on just 6 stocks and a lot can change over 20 years. What seems to be nice right now maybe irrelevant maybe after 5 years.
     
  6. marach88

    marach88 New Member

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    Good stocks..i believe Yes bank is expensive if you bought around CMP..rather i will go for DCB & Federal Bank, rest are good choices..CARE can be doubled in yrs to come..
     
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