@Markit_Analytix

In investing, when you are on a roll and end up owning multibaggers in the portfolio, you start facing problems of skewed portfolio weightages. While its a happy problem to have, it still remains a problem.

Usually in a concentrated portfolio, until.a stock’s weight crosses 30-35% , its not a big issue. But once it assumes weightage of more than 35-40%, things start getting tricky.

The main thing to look out for is whether the stock is running hard on numbers, or narratives. Or a combination of the two. If its only narrative, then position needs to be cut. If earnings continue and further triggers are lined, up a longer rope can be given.

Psychologically, its difficult to digest the portfolio value swings that are dictated by a single stock being hevay in portfolio. But riding one or two big multibaggers is all thats needed to overcome this bias.

At some point of time, a decision would have to be made and trigger have will have to be pulled… The key consideration will be how much upside is pending at that point of time. If the best case earnings for next 2-3 years are baked into prices, it makes sense to atleast trim if not exit fully.

For consequences of not taking action, recent example is of Laurus labs. There were folks including me who had heavy allocation to the stock. If we had not sold when we did, and kept holding on, portfolio growth would have taken a hit. I had put up technical and fundamental reasons for exits at that point of time.

At times, after you sell, stock will continue to go up and make you look dumb. But that has to be taken in your stride. Most investors, including the smartest of the lot go through this phenomenon off and on.

Hope this helps.

Yes i agree . And it nt alwys true that i will clear all the cfa levels in one go . So doing an mba makes sense . Any recommendations for the university?

Smaller Qty not available, its a part of Human Behaviour / Psychological Re-programming. First by making you used to the platform and building a dependency. textbook business model. (making you buy more and increasing the Gross Order Value. ) Something I would say on a similar lines for selling large qty at COSTCO (US Wholesale).

Analysing per my buying behaviour , I used to buy 1 Nissan Cup Noodles earlier 1 as the single quantity was available with 1-2 price discount than local retailer. But now a days i see packs of 2 with in total 2-3 price discount. So i end up buying more and the intake of the items has increase from 1 bi-weekly to sometimes 2 weekly, (now for couple of weeks no order of Nissan Cup Noodles)

The only thing to wait and watch is the adaptability to this model. If this gets deep rooted in India. The next phase in parallel I would say is to watch tier 3-4 cities, make them buy in small / usual / daily quantities. then transitioning.

Hello sir, Can you explain how can we plan SIP method in this strategy. Thank you