Doing what you love is happiness and for me its investing ! What a message Sir !

Sir, I have been doing Asset Allocation & aggressive rebalancing since last 22 months and have been managing 23-24% XIRR consistently. Majorly its ETF & Index Funds rotation (Large, Mid, Small, Nasdaq, IT & Goldbees). Its peaceful , easy to track and let me be honest- keeps me happy.

Now that I have completed 1 bear and 1 bull cycle ( Bull is still on though), I am thinking of leverage in the next bear cycle. Obviously not a huge amount, but thinking of taking OD on FD or other safe instruments whereby interest rate shall be less than 10%. Overall leverage would be 30-40% and own funds would be 70-60%. Ability to hold for 5 years as have regular salaried income.

What would be your advise on the above strategy.

Right issue give pro-rata entitlement to all shareholders holding shares on record date, so per se can not be negative minority shareholder in my view. If price is 4000 and right issue is given at 10 (in same proprtion to holding to every shareholding) the ultimate share pattern remained unchanged. It is like Bonus issue which is issue at nil cost to all shareholder pro-rata.

Further, the minority shareholder who do npt have cash/or find inconveniet to subscribe in right, can sell their entitlement in stock market, which are priced normally at differences of current market price less right issue price adjusted with discount factor. So every shareholder (inclduing minority shareholder) has option to benefit from pro-rata allotment in rights.

Coming to last pointsl about increase in promoter stake, there would some shareolder who did not subscribed to right nor did sale their entitlement. In such case, board is authorised to allocate shares to other member in oversubscription ratio in pro-rata basis. So the increase in shareholding by promoter has not directly resulted as loss to minority shareholder. They may have right from open market (in which case kind of purchase at near market price) or got pro-rata allocation for their higher subscription, at same basis, as other shareholder who over-subscribed. You can ot blame managment for non-action of minority shareholder and increasing capital at lower price, at least, in this case in my view.

Discl: No investment in company. Not SEBI registered advisor. Not recommending any investment action.

RBA was trading at discount becuase of this overhang of promoter sellling , may be it will catch up with the like of Devyani , Jubiliant …

I have been wondering for a very long time, on where to keep a log of my investing behaviour. I have done so in pocket app, google drive and many other places. Somehow all these have been scattered and difficult to locate at times. So I’m starting this thread, one to keep a track of my portfolio and other to get your feedback on my portfolio,

At the start, I’m a doctor by profession and quite passionate about investing. I’m been in the market since 2006. I have committed almost all mistakes as a market enthusiast, right from option trading, intraday, swing trading to cigarbutt long term investing. I have witnessed two major correction in my portfolio of more than 50-60%, one in 2008 and other in 2020. In 2008, I was doing what that should not be done- watching live, all the doomsday predictions on days of Lehman crisis. I had invested my dad funds and mine. On watching the news anchors prediction, I sold all my positions at 10000 levels of sensex, as those financial experts were predicting that Sensex May even go to 3000-4000 levels. Such was the panic those days and I did panic badly. One good thing was the amount involved was very small as it was start of my professional career. This 2006-2009 period gave me very valuable lesson – euphoria, infra boom, reliance hype, Lehman crisis and prolonged fall in the market unlike the covid fall. Though the fall was significant, I was inclined to do fundamental analysis as I was very much into reading most of WB, Peter lynch, Philip fisher books. With the guidance of these stalwarts, I was constantly looking for fundamentally sound companies and investing in them with the regular cash flows I get from my medical profession. Because of lack of proper direct guidance, I did learn the trick slowly but surely. I always kept part of my money invested in mutual funds as I though that it will serve as an yardstick for my direct equity portfolio.

Now after close to 16 years of investing, and bulk of investments done in the last 5 years, I’m close to being financially independent now.
I will open my portfolio positions and the rationale behind it in the next post

Sharing snip from credit rating Crisil.