Your two criteria for re-investment specially market cap <5000 cr…when you invested in KEI at the level of 1700, that time market cap must be around 15,000 crore…or am i missing something?
Posts in category Value Pickr
NPST – Technology Provider for UPI Tech (26-11-2023)
Any comments on the valuations?
Unluckily missed it around 800 (due to fund shortage)
PE and P/S is at peak, any comments?
Companies with 20%+ growth guidance for next few years (26-11-2023)
Sansera Engineering and MM Forgings are small cap companies that might grow at 20-25% CAGR for the next 3-4 years
Long term investment strategy (Buy, hold but don’t forget) (26-11-2023)
I invest regularly whenever i have cash.
Since sept 2017 till today, i have invested e.g. X amount every weekly whether Sensex was 27000, 45000 or 65000.Only requirement is good company should be available at reasonable P/E.
Uptil now, i had not reshuffled portfolio.
Since last one and half yrs, i had put cash in my own stocks and tried to put same amount in each stock.
E.g. I had first bought carysil at 150 and then reinvested at 250, 350 and even 600.
Lt foods , First time i bought at Rs 65 then at Rs 30 ,Rs 20 and even Rs 95.
Kei, first time at Rs 380 then 500, Rs 1000 and even at Rs 1700.Only thing i watch at the time of reinvestment is
1…P/E should be less than 35 at the time of reinvestment
2…Mcap at the time of reinvestment should be <5000 cr .
I had reinvested in almost 60% stocks.
I think, this strategy helps in building concentrated portfolio (10-25 stocks)
As per me ,there are 2 ways for creating concentrated portfolio
A…For long term investor, buying own stocks
B…For medium term investor, switching over other stocks and making concentrated portfolio
If i am long term investor, only way to make concentrated portfolio is to buy own stocks.Otherwise how can i make concentrated portfolio without high churning.
If anyone has any other idea, how to make concentrated portfoilio, please share.
Thanks
The Anti-Portfolio (26-11-2023)
Do you still hold Caplin Point.Just wondering why are the valuations still reasonable in spite of good fundamentals.
Long term investment strategy (Buy, hold but don’t forget) (26-11-2023)
Trimming a very big position down to your comfort level is very important, before all the gains are vanished.
I have seen this with SUN PHARMA in 2015, when the stock suddenly corrected from 1200 to 800 and then to 600 within 6-9 months. Hence trimming the position is required from time to time.
Stories of 10-20-30 baggers all look good, but an individual investor is not interested in the stories but want to achieve her financial goals. For that, booking profits from time to time is also an important part of the process. Many people will learn this over a period.
Long term investment strategy (Buy, hold but don’t forget) (26-11-2023)
Main reason why switching doesn’t work is our psychology as stock rises in Bull Market and trade at fundamental valuation plus public exuberance. Adding a new stock is a marathon exercise for me hence now looking for new only if existing stock is too too expensive or some fundamental change happened.
All investors to clear their home loans and car loans if they have before putting more allocation to stocks.
I used 2017 bull run and this bull run to clear of my 2 property and one car loan. Zero liability rightnow hence my perspective towards market is only financial freedom hence bets might be accordingly as risk appetite is high.
Long term investment strategy (Buy, hold but don’t forget) (26-11-2023)
You are right, it is always on risk appetite however do you think selling your winner and buying other stock at same time will reduce your risk, i used to to do this 3 years back however stopped it completely. Kalyan jeweller was 15% holding when traded at 110 entry point, its 30% now at 330, contribution from single stock is 40% in my annualized return of 95%.
Decided not to sell it for next 3 years at least as story is intact.
Fallouts of trimming, PG Elctroplast bought at 350 and exited at 900, current running 2400.
Fallout of conviction, ABFRL came down from 360 to 228. Bought at 140, holding it as i believe in long term business moat.
Long term investment strategy (Buy, hold but don’t forget) (26-11-2023)
I don’t know of anyone in VP who can be compared to RJ. My post was about a comment I read in VP, and the member who posted the comment was very experienced, so if seasonal investors can feel that, a retail like me would feel more of that, for now I can only imagine how it would feel to have a big position and seeing it go up and down.
Of course there may exist investors who have deep understanding of the business and are okay with volatility in a stock, even if it occupies a big position in the PF.
Long term investment strategy (Buy, hold but don’t forget) (26-11-2023)
You need to ask how much money you have and how much you can loose without affecting you life significantly. do you think if Mr. Jhunjhunwala looses 14k Cr, it will make any difference in his and his family’s life? answer is no right. and what happens if you/I loose 70% of our wealth. there is no single investing model which fits everyone. it all depends on your risk appetite.
I strongly feel that we should not be using big investors to justify our choices. because there is huge difference between our risk appetite and theirs. As a retail investor we can not loose big money as our family’s future depends on it.
One day if i have that kind of money then i can also take such kind of risk. till then I’ll refrain myself to do such an allocation