Hello everyone,
I started my equity investing journey in July 2023 with the goal of generating a long-term return of 20% or more. While I have previously invested in equity through ELSS mutual funds primarily for tax savings, I believed that, as an individual, I could have more flexibility in investing and potentially generate higher returns compared to mutual funds. Recently, my churn rate has been high, possibly as a result of a steep learning curve.
My filtering process is based on the following model:
- Margin Expansion due to company expanding into value added product
- Operating leverage playing out
- Develeraging thus lightening of balance sheet
- Product mix change i.e. increase in higher margin business
Exit Framework that I am currently following:
- Volatility based indicator showing exit
- Key Thesis Breaks
- Better opportunity available
Current Portfolio
| Instrument | Allocation |
|---|---|
| ARMANFIN | 10.31% |
| EQUITASBNK | 2.24% |
| GOODLUCK | 6.64% |
| ICIL | 3.82% |
| JSL | 3.09% |
| GMMPFAUDLR | 2.47% |
| MARATHON | 2.18% |
| NIFTYBEES | 37.82% |
| NUVAMA | 5.58% |
| PRICOLLTD | 4.10% |
| SENCO | 9.09% |
| SKIPPER | 4.37% |
| PENIND | 2.11% |
| SOUTHBANK | 6.19% |
Currently, the highest allocation is to NiftyBees. The goal now is to find more businesses that fit into my framework, thereby reducing my allocation to NiftyBees. If I am unable to identify any opportunities with a good MoS, I tend to transfer my funds into a Liquid Fund. This helps me to maintain sufficient cash when the opportunity arises.
This thread serves a double purpose: seeking feedback for process improvement, and documenting my decisions as an investment journal, both enhancing self-awareness and refining decision-making processes.
Disclaimer: The content provided here is not investment advice. It reflects solely my personal opinions, and I could very well be wrong about any of them. Before making any investment decisions, it is advisable to consult with your financial advisors.
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