You want to be present in many different sectors, okay. The PF consists of many prominent sectors, and all well known names, which are covered by the analysts and here in VP.
I am not aware of the managements of few of companies above, so I cannot say anything regarding this aspect, but it appears that is not a concern, for the biggest names at least. And as these businesses will exist for many more years, except for the intermittent periods, sales more or less will increase. As far as returns are concerned, your return expectation of 15% is very likely to be achieved from the above PF, of course, you may remove and add some names, even sectors as time progresses. And since you have a plan as to how to go about analyzing your stocks, reading the reports, listening to management etc, and as you have chosen 2 names from many sectors, it is manageable time wise, as more or less all companies behave the same in a sector, with a few exceptions.
So I guess the only thing that remains is the valuations that you have bought these at, and if the businesses will continue to grow meeting the expectations of the investors, for the valuations to sustain, providing you with the returns that you expected. As even rock solid businesses go into sleeping mode for years, and if the allocation to such stocks is high, we may get the feeling of missing out on other opportunities if the capital is limited, so one solution is gradually build a position.
Except for Dmart, I don’t follow any other businesses of your PF, so I cannot pinpoint any negatives, if there are any. So looks like a sound PF, a solid PF, chosen as per your line of thinking and perspective, and it appears to be a low churn PF too, for the most part.
Subscribe To Our Free Newsletter |