Current (December 2014) Portfolio Picks



As mentioned in the previous post, I am no longer monitoring my portfolio picks for performance. However, the downside to this is that I do need to restrict my stock universe. I have brought down the number of stocks in my portfolio. I intend to keep bringing this down. Below is my current update and outlook on the eventual 40 odd stocks I intend to have in my long term portfolio:

Sector
Sector Stock Current Outlook Weightage in Portfolio
Finance 13%
IDFC Accumulate
ICICI Bank Sell on Rises
Indiabulls Housing Finance Accumulate
Diversified 2%
Reliance Accumulate
DCM Shriram Buy
Consumer Facing 6%
Akzo Nobel Hold
United Spirits Hold
Indian Hotels Hold
IT 6%
TCS Accumulate
EClerx Accumulate
MPS Hold
Pharma 5%
Shilpa Hold
Ajanta Hold
SPARC Accumulate
Investment Co 4%
EID Parry Accumulate
Bajaj Holdings Sell
Bajaj FinServ Accumulate
Tata Inv. Corp Hold
Oil and Gas 1.50%
HPCL Hold
Cap Goods 2.50%
L&T Accumulate
Infrastructure 3.50%
IRB Infra Accumulate
ITNL Accumulate
GPPL Accumulate
Financial Intermediary 2.50%
IVC Accumulate
Metals 4.50%
Sterlite Hold
Tata Steel Hold
NMDC Accumulate
Hindustan Zinc Accumulate
Engineering and BtoB 9%
Cummins Hold
Grindwell Norton Hold
Bharat Forge Hold
Mayur Uniquoters Hold
Polymedicure Hold
BKT Accumulate
Auto Ancilliaries 4%
Munjal Showa Hold
Banco Hold
AmaraRaja+Exide Hold
Agriculture and Agrochemicals 4%
PI Hold
Kaveri Sell
KRBL Hold
Real Estate 12.50%
Oberoi Realty Hold
Nesco Hold
Sobha Hold
Telecom
Idea Buy 1%
Total 81.00%

Of course, these 45 odd stocks constitute only 81% of my portfolio. Even these 45, I want to trim down to 25. Of the remaining 19%, the prominent ones I want to dispose off include: ITC, BASF Agrochemicals, Oriental Carbon, Selan,RS Software, CanFin Finance, Unichem Labs, Muthoot Capital, Shriram City Union Finance, PTC Finance, Kitex Garments, HUL, Gillete, Repro, National Peroxide, Mazda, Gandhi Special Tubes, Syndicate Bank, Carborandum Universal and Oriental Bank. I would do this right away, but the problem is that I am sitting on hefty capital gains on these, and I will wait for a year of holding to get rid of them. In some cases, I don’t like the stock well enough to buy, but I like it well enough to be reluctant to sell, unless I get a good price.

Pls. note: The above is simply a list of stocks I hold, and don’t intend to hold. This is a personal journal. It is neither a recommendation to buy/sell, nor is it an endorsement of any of the stocks being discussed. I am an amateur investor, with a patchy record, and my own peculiar risk profile. Please do your due diligence before you buy/sell any stock.

No more monthly updates on investment performance



After long thought, I have decided to stop monthly updates on my investment performance, at least for a while.

There are many reasons for the same. Certainly one of the practical reasons is that I was spending way too much time on updating and refining my spreadsheets, neglecting more essential things. The other was that I was almost reviewing my performance on a minute to minute basis, and I think that that kind of obsessiveness results in too much activity on the stock markets. It is better not to know every minute what your performance is. The third reason is more nuanced. If indeed, I am a long term investor, why am I worried whether I have beaten the benchmarks daily, weekly, monthly or trimonthly. I should take a view on a stock at a particular price. If the price falls, I should buy more. Then I just need to review the performance every year, and try to beat the benchmarks every year. This is because my one and a half year’s intense experience has taught me that a) Markets often get it wrong in the short run and b) that momentum traders sometimes trade up a stock excessively, or sometimes punish a stock unreasonably. Momentum trading may be profitable for the people who practice it, but I cannot see myself trading solely on price, without any fundamental backing.

If markets do get it wrong in the short run, then why worry about performance in the short run. I should only worry about performance in the long run. And this is what I intend to achieve by not keeping on comparing myself to benchmarks.