Hi all,
I am in my late 20s. I started investing in May 2021 at the peak of crypto mania to make quick money by investing in Bitcoin and Dogecoin (learnt some valuable lessons). Since then, I have been investing primarily in Indian stock markets (90%) with some exposure to US stock markets (10%). Initially, I started with coffee can approach (burnt my hands) then transitioned to an approach with diversified PF of reasonably valued stocks. I typically screen stocks from SOIC, Wealth Insight magazine, various blogs and of course by manual screening of fundamentally strong stocks and stocks in Stage 2 tool of @Tar. The XIRR with the latter approach has been decent in last two years.
Here is my current Indian PF:
Stock Name | Current PF weight | Average Buy Price |
---|---|---|
All E Technologies | 9.00% | 290.96 |
Varun Beverages | 5.87% | 713.48 |
Senco Gold | 5.40% | 787.43 |
Samhi Hotels | 5.19% | 193.20 |
Interglobe Aviation | 5.01% | 2,991.83 |
Narayana Hrudayalay | 4.85% | 1,066.09 |
Godawari Power & Isp | 4.39% | 784.45 |
Polycab India | 4.18% | 4,830.47 |
Prestige EstatesProj | 4.15% | 1,270.41 |
Equitas Small Fin. | 4.10% | 90.45 |
Glenmark Pharma | 3.76% | 1,031.34 |
Zaggle Prepaid Ocean | 3.65% | 324.09 |
Kama Holdings | 3.54% | 2,634.57 |
Nuvama Wealth | 3.52% | 3,984.48 |
Tejas Networks | 3.19% | 1,089.68 |
KEI Industries | 3.15% | 1,870.84 |
Info Edge | 3.11% | 4,748.57 |
Multi Commodity Exch | 3.01% | 3,100.91 |
Aditya Vision | 3.00% | 2,238.49 |
Medi Assist Health | 2.82% | 524.03 |
Deepak Fert & Petro | 2.65% | 959.83 |
Pennar Industries | 2.61% | 149.27 |
GMM Pfaudler | 1.70% | 1,512.14 |
Vadilal Industries | 1.53% | 3,690.56 |
Arman Financial Serv | 1.46% | 2,141.64 |
One97 Communications | 1.34% | 415.19 |
J Kumar Infraproject | 1.16% | 850.52 |
Tarsons Products | 1.14% | 483.85 |
Laurus Labs | 1.10% | 430.34 |
I own 29 stocks at the moment. While this number is on the higher side, I play a basket approach in some sectors (Polycab + KEI) and stocks with less than 2% weight are tracking positions. I will be outlining the thesis/anti-thesis of top 10 stocks going forward.
Stock Name | Current PF weight | Average Buy Price |
---|---|---|
Tesla | 36% | 168.79 |
Evolution AB | 25% | 111.34 |
Ark Genomics | 13% | 24.17 |
Amazon | 12% | 165.59 |
Inmode | 12% | 19.49 |
Zapata Computing | 2% | 0.5171 |
I won’t be adding incrementally to the US PF as the performance over past three years has been abysmal. I can’t use my framework that I use for Indian Stock Markets due to higher volatility and lack of resources/conviction for US stocks.
Here is my investing philosophy:
- I typically start with 4% allocation. 6% allocation if I am convinced and valuation is good (AllETec as an example).
- I don’t average down if the business is going through headwinds. I learnt this lesson the hard way. I kept averaging down when Laurus Labs was going through price erosion in ARV prices. I made GMM Pfaudler my highest weight by average down. I have since then learnt this lesson as opportunity cost was massive.
- I typically start tracking positions with 1-2% allocation when I am still studying the business or if the business is in headwinds. I ramp up the position once I see fundamental triggers or triggers on charts.
- I only use two technical indicators: Weekly EMAs (10, 30, 40 week) and Relative Strength(RS) with respect to Nifty 500. I cut the position sizing when I see the stock is moving below 10 WEMA and RS declining. I am extra cautious when stock is below 30 and 40 WEMA. I bring down the weight to 1% if the stock is below 30 and 40 WEMA.
I will try to crystallize my thoughts and add more points later.
Here is why I started this thread:
- In the recent months, the churn rate has been high out of anxiety. I want to use this platform to be more accountable for my decisions.
- Dump and organize lessons and information I gather from various sources. Lately, I have been cluttering my mind with useless information. I hope by this activity, I can be more selective about my consumption going forward.
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