Good Thread. Alos it prompted me to revisit my 15+ yrs in Equity investment(initial 5-7 yrs re very small amount30-50 K yr)
Buying many stocks and creating portfolio of 25-35 stocks (even if some are good average return is not up to the mark)
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Buying high debt company (bought Suzlon in the hope of turn around waited for 5 yrs – negative retunrs as on today –
learning – never buy high leaverage company – I made a rule 0.5 is max D/E to be consider for my PF) -
in last 15 yrs I have 3 home run (25X, 15X & 10X) but 2 of them are very small amount 10 K one is 60K . Learning – Add new stock PF if you are ready to put sizable amount . now My Rule is Minimum amount for new addition in PF is 1 Lac)
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List item I am Long term investor (by Default – 5-10 yrs or even more) – for now I am in earning period of my career so not thinking of exit in my PF untill /unless I need money. Learning We need to do exit plan or define freamwork as many a time share gives good retunrs and than come back to singnificantly low level & I miss the Profit booking opportunity (eg Lanco industry bought in 10-15 range went up to 1100 & now we all know the .30 paisa , Tata Elxi – bought at 750 went to 10K & now bak in 6 K level ) Need to define my exit criteria. (Still not done but start learning about it . any good suggestion /strategy some one using please share)
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