Portfolio update: Risks of leveraged buying
If you have read my thread, You would have come to know that I am a plainly lucky guy who has taken risks out of my reach.
But everything that goes up should come down, right?
When the market started dipping, I started getting a few margin calls in my overdraft (LAS) account. I could manage the same with my savings. Suddenly the market started to just fall down, Now I could not manage margins owing to the sheer scale of my leveraged buying (W r t my finances). I was faced with two options. One is to sell my holdings as required and pay off the margin calls (Since all my largecaps were pledged for LAS, I had only small caps free which again were battered by that time), While the other option was to get money. Hence went with G Loans, Paid enough to prevent margin calls and when the markets are rising now I am repaying the loans and further increasing positions. This was a great experience and has further taught me to multi-collateralize my leveraged positions.
Updates to the PF:
Natural Capsules Bought – The company looks good Increased sales Y-o-Y owing to the machinery upgrades. Wanted to capture the opportunity in the steroid API sales.
Diamines and chemicals – Ultra conservative and secretive management, Looks like they don’t know that any other company except theirs exists in the world. However, they exist in a less crowded industry and are doing a 10X CAPEX which is to come on line starting FY end in stages.
PEL Added as the special situation (demerger)
Looking to add more natural capsules, Chemcon, Diamines & Grasim (B2B & Paint)
Very sorry if the wordings are not polished, Wanted to share an update
Stay safe
Voldemort
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