The rule is pretty simple but not easy. Major corrections like what we saw a few days back are excellent opportunities to switch stocks in your portfolio. Both good and bad stocks would go down during a panic, while the bad stocks tend to settle there good ones will usually recover. Sometimes the best stock to buy in a correction could the one that you already hold in your portfolio and has performed well in front of your eyes and ticked all the check boxes. Cut your weeds 
and water your flowers 
.
Posts in category Value Pickr
What you are buying in this major correction ? PF readjustment! (02-09-2015)
What you are buying in this major correction ? PF readjustment! (02-09-2015)
This is getting really collaborative now, so much to learn from each other and their approach toward PF balancing in a big correction. I guess there should be a process for value investors and a defined approach as to how to approach this subject and learnings from previous such phases of market.
Any thought on this !
Sathya – Portfolio (02-09-2015)
0.27% of your today’s portfolio might be enough to cover for 1 year of schooling for your grand child. I might be entirely wrong with my example but the point is as shareholders we must be ruthless in capital allocation, bits and pieces here and there can indeed make a difference if you are willing to stay in the game for many years. You need to come out of this mental accounting. Every rupee matters and your job is to compound it. As far as learning is concerned there are better ways, just watch around you and you will see people doing mistakes all the time and as Charlie Munger says you can become a collector of human follies. Over a period of time and a bagfull of these follies will serve you good for the rest of your life, and not just in investing.
What you are buying in this major correction ? PF readjustment! (02-09-2015)
I have no meaningful cash. Fully invested and haven’t sold on any of the rallies. Pharma is 65-70% of the PF (shilpa, granules, shasun, torrent and alembic pharma – each between 10-18%) and others include Yes Bank, ambika cotton, HGS, jk bank, small portion (~2% each) in kitex and kaveri.
( I had Thankfully closed my BTST position on yes bank at profit of 25/- per share at arnd 836/- just before the epic fall came)
If I had cash right now, I would have bought yes bank, ajanta Pharma and maybe oriental carbon and ambika cotton too.
Even this loss-period has been a learning curve and will help for the future.
What you are buying in this major correction ? PF readjustment! (02-09-2015)
Excellent thread started.
I have a very large and diversified portfolio and always confused to exit which counter because most of the stocks I have has been inherited and I don’t wish to sell.
But I sold my all holding in Reliance group ( both Ambani’s, they ruin the wealth of shareholder in last 8 years ) which I had since inception.
Also exited PSU’s like REC,PFC
Also exited commodity stocks like Tata steel, JSPL ( not sold at 770 and sold at 245 still lucky ),sesa sterlite.
I have following stocks
TCS
Sun pharma
HDFC
HDFC Bank
Kotak Bank
Thomas cook ( very confident on prem watsa )
Kitex garments ( very bullish )
Ambika cotton
Pokarna
Mold tek packaging
Intellect design arena
Shilpa medicare ( very small quantity wanna to increase significant )
Bajaj finance
Motherson sumi
Eicher motors
Page Industries
Bharat forge
Gruh finance ( very bullish )
Ashiana housing
Poddar developers
Shriram transport finance
Asian paints ( small quantity )
Aurobindo pharma
Avanti feeds
Bosch
Century plyboards
DCB bank
ICICI bank
L&T
Mayur uniquoters
Oriental carbon ( bullish )
PTC india financial
Premco global
SBI
Suven life sciences ( very optimistic )
Tech Mahindra
Tata Motors ( DVR )
United Spirits ( SIP and extremely bullish )
NIIT
Wish list:
Shilpa medicare
PI Industries
Please don’t laugh at my portfolio being too diversified.But I actually don’t understand the capital allocation frankly spealking.
I am to reshuffle my PF if someones guides me. Also most blue chips I am having has been since inception and recieved as inheritance so reluctant to sell my winners.
Views very much invited to organise the PF from seasoned investors.
What you are buying in this major correction ? PF readjustment! (02-09-2015)
@sinha124 – Good thread 
This correction was an excellent opportunity for me to rebalance my PF. My allocation towards Pharma earlier was on the lower side. I used this correction to add more of Ajanta, Shilpa, Aurobindo & Alembic. I already own Torrent. (I follow a basket approach when it comes to Pharma, as each of these names specialize in a particular segment).
Shilpa is an SIP candidate for me. I buy more when there is a correction and nibble when it is at the higher levels.
Sold off Amararaja & other names where my allocation was less than 3% in the recent rally.
I stocked up Avanti, Indusind, Treehouse, CCL, Bajaj finance, & MPS at lower levels.
I am looking at adding more of Avanti, & Kaveri if there is further correction. Looking to add PI & one of GRUH or Repco to my PF. Have invested 50% of my investible cash and will add more only if I get my buy levels.
I have other tracking/trading positions.
Thanks,
Ravi S
Disc – Please do your due diligence.
What you are buying in this major correction ? PF readjustment! (02-09-2015)
I hold a tight PF of 8 stocks. I did some churning during the last 10 days or so. I/m much more happy that this correction is happening and hoping for much deeper cuts. 
Exited: MPS Ltd
Reduced: Ashiana Housing
Increased Stake: Thomas Cook, GRUH, Shilpa Medicare and Symphony
Bought fresh: Eicher Motors
No Change: Ajanta Pharma and Avanti Feeds
Looking at: CRISIL, Sundaram Finance and Page Industries.
What you are buying in this major correction ? PF readjustment! (02-09-2015)
I have been tracking & have started nibbling Godfrey Philips around 550
levels, they have diversified into seven eleven types of stores, called as
24×7 stores, into pan masala ( Pan Vilas), confectioneries , high quality
tea and their original business of tobacco
Comments and inputs/ insights awaited from all the learned people of our
forum
What you are buying in this major correction ? PF readjustment! (02-09-2015)
I have a diversified portfolio of 18 stocks. Highest % of 9 to 10 in ajanta and Avanti and least in Symphony of 3%. About 6 months back Symphony was the highest. As a habit I have always booked profit after 1 year of holding(due to tax concerns) and invested in other conviction ideas which have less exposure like Atul, Vinati,CARE and Suven. Exited kaveri, Atul auto. Kesar terminals, TV today network, Ashiana housing, Vmart etc. I usually exit when the % goes below 3% even if it is a good stock and wait for reentry. I don’t know whether this is a good approach. I could take a hit of 10% in the present correction. I am watching Cyient and Ashiana for reentry. I am always fully invested even though I would like to be otherwise.
Phoenix lamps – rising up from the ashes? (02-09-2015)
Thanks for great notes.
Can you please name the competitor mentioned in point 8? Is it possible (if discussed in AGM) that management will completely hive off / sell the European subsidiaries if they continue to make losses?