Hello All!
I’ve been following this forum for a while and have learned a lot from everyone’s insights. While I feel like a newbie, I’m eager to share my experiences and hopefully contribute something to the community.
My investment journey began around June 2020. As I started to understand the underlying concepts, I was captivated by the idea of owning a piece of incredible companies. Till that point, people I looked upto would always it’s a gamble.
My initial investment strategy was, to put it bluntly, terrible. I’d pick stocks based solely on their historical price charts, completely ignoring fundamentals. It was a reckless approach, to say the least.
With a small capital of 5 lakhs, I blindly invested in companies like Maharashtra Scooters, KPIT Technologies, City Union Bank, Bata, Escorts, Bharti Airtel, Hero, MGL, Raymond, Ceat, ICICI Prudential, Amara Raja, Frontier Springs, PVR, VRL Logistics, M&M, Bajaj Auto, Astral Limited, Future Lifestyle, and Parle Industries (mistakenly thinking it was Parle Biscuits).
I had no idea about P/E ratios, market caps, or financial statements. I was simply drawn to stocks that had shown consistent upward trends.
The worst part was my inability to hold onto winners. As soon as a stock doubled, I’d sell out of fear or greed. This short-sightedness cost me dearly. For instance, I sold KPIT after a 100% gain, completely missing out on its subsequent multi-bagger run. Additionally, Future Lifestyle and few other companies was a constant disappointment, leading to averaging down, which turned out to be a poor decision. At this point, I had made no money, I would sell out seeing by even a 5% correction.
Feeling frustrated with my results, I decided to start over in 2022. I focused on understanding the companies I invested in and developed a more patient approach. This time, I built positions in ITC, KTK Bank, South Indian Bank, Wonderla, VGuard, Whirlpool, Tech Mahindra, Sun TV, Krsnaa, Kalyan, AB Capital, and Chamanlal.
While not perfect, this strategy yielded better returns. I sold most of those companies and invested in US Tech companies when I saw them crashing for no solid reasons. I found them to be better at that point and I also wanted to book some profits.
Here is the current portfolio. It was untouched from 2022 till last month. Sold some portions from Meta/Amzn and Googl profits and started a position in remaining companies.
| Indice | Avg Price | US Folio Weight | Rationale |
|---|---|---|---|
| Meta | 103.33 | 26.8 | In my friends circle and family, I see atleast 2+ hours of scrolling in Insta/FB and Whatsapp is the goto chat tool. |
| Amzn | 93.33 | 25.61 | Prime user since 2021 and saw a lot of IT Customers using AWS. I enjoyed their products and services and prefer over other retail and cloud solutions. |
| Googl | 92.85 | 23.72 | Lot of essential tools. Maps, YT, Search, Android, etc., OpenAI is a new competition for Search but I don’t see it impacting Google anytime soon |
| Intc | 25.06 | 13.02 | Just from a pure value play. Can’t digest such a company at <100B valuation. Still reading about their growth/sustainability. |
| Vwagy | 11.3 | 5.87 | I liked their cars and was surprised to see it in multi year lows (around 4 PE). Still reading. |
| Nke | 75.46 | 4.98 | Liked their products and current valuation. I still see it growing in the coming years. |
And below are the Indian stocks I am currently adding or have been adding recently, I will share the size, rationale and weightage of these in a few days.
My portfolio currently leans towards a mix of Indian financials and a few long-term tech bets. Here are the stocks: HDFC Bank, Shriram Properties, City Union Bank, Muthoot Microfin, RBL Bank, Manappuram, DR Reddy’s, Lux Ind, Dyenamic Products, Suryarosni, Stovekraft, KRBL, DCB Bank, Amarjothi, Lincon Pharma.
The whole point of this is to share some of the bad decisions I made over the years so that someone else reading this try and avoid it. But I am also thinking Investing a self thing, you don’t really learn until you burn your hands. So start somewhere and enjoy the process of owning your favorite companies.
Please feel free to through your judgements, thoughts and questions. Thanks.
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