	Active Topics Memberlist Calendar Search Help
	Register Login

Portfolio Check Up
The Equity Desk Forum :Market Strategies :Portfolio Check Up

Topic: Smartcat - Portfolio Checkup

	<< Prev Page of 148 Next >>

Author

Message

PKB2000
Senior Member

Joined: 11/Aug/2006
Location: India
Online Status: Offline
Posts: 1453

Posted: 14/Jan/2010 at 9:34pm

Bahut Saal baad mera mukh se achanak nikal aya - GURU JIO!

I am always doing that which I cannot do, in order that I may learn how to do it. ~Pablo Picasso

IP Logged

Ashutosh
Senior Member

Joined: 05/Apr/2009
Location: South Africa
Online Status: Offline
Posts: 226

Posted: 14/Jan/2010 at 3:03am

Originally posted by smartcat

My portfolio finally reached the value "X" today - where X is the all time high it reached in Dec 2007. However, I had added some cash to the portfolio a few months back - so its not that the portfolio has recovered the entire amount I "lost" after Dec 2007.

From now on, if the portfolio value appreciates by 5% by the end of this month, I will have (X + 0.05*X). I will sell shares worth 0.05*X in February, so that the portfolio value remains at X. I intend to move the proceeds into debt funds and this process will continue every month.

I currently have 33% of my investments in debt funds and 67% in equities. So as my portfolio value rises, debt funds percentage keeps going up while equities go down.

I might lose out on some part of future potential gains - but I intend to reduce the damage by following a mechanical process of selling. Out of the 93 companies I own, I intend to sell the high trailing P/E stocks first. In Valueresearchonline.com, it is possible to list all the stocks by descending P/E order with the click of a button.

Basically, the first to go would be high P/E FMCG stocks like Nestle, Marico, ITC - which don't have much scope for huge appreciation anyway. I let low P/E tiny caps like Anjani Cement (PE of 3), ABC Paper (PE of 4) and Lincoln Pharma (PE of 5) run.

Thanks Smartcat for sharing your strategy on selling portfolio.
Selling is a difficult thing to do.
When you will be selling 5%, will you be paying short term capital gains?
Will you miss multibaggers due to this strategy ?

My tastes are simple: I am easily satisfied with the best

IP Logged

Vivek Sukhani
Senior Member

Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675

Posted: 14/Jan/2010 at 7:18am

By the way, any idea about Narmada Gelatines?

Jai Guru!!!

IP Logged

CHINKI
Senior Member

Joined: 07/Feb/2007
Location: India
Online Status: Offline
Posts: 2827

Posted: 14/Jan/2010 at 11:19am

Originally posted by Vivek Sukhani

Dont be in a particular rush to sell ITC.

Check this article.

FMCG sector's growth may have slowed

May be Smartcat is right.

TOUGH TIMES NEVER LAST, BUT TOUGH PEOPLE DO

IP Logged

Vivek Sukhani
Senior Member

Joined: 23/Jul/2006
Online Status: Offline
Posts: 6675

Posted: 14/Jan/2010 at 11:38am

I dont know why people look at ITC as a mere FMCG company. FMCG-non cigarattes is still in its nascent stage. Its hotels business can be a big hit as can be its agri-business.

Jai Guru!!!

IP Logged

smartcat
Senior Member

Joined: 29/Mar/2007
Location: India
Online Status: Offline
Posts: 4243

Posted: 15/Jan/2010 at 12:08pm

will you be paying short term capital gains?

Actually, this will be a big issue for me if the portfolio value goes up too fast, too soon - because most of the purchases have been made in May/Jun 2009. However, if required, I will sell stocks before 1 year - like Asian Paints - which have an appreciation of only around 10 - 15%.

Will you miss multibaggers due to this strategy ?

Before, I used to invest in stocks hoping to bag a few multibaggers - I never got any.

Now, I invest in stocks for dividends and overall capital appreciation only - and I have managed to bag a few multibaggers (Eg: Hindustan Tin Works, TCS, Fame India etc) by accident.

Point to remember thought is - These stocks are not life-changing because of low weightage in the portfolio - but they help.

Dont be in a particular rush to sell ITC.

I have a choice between selling an ITC or a, say First Leasing - because I have to sell. Now between ITC (20% growth rate, 25 P/E, Rs. 90000cr MCap) and a First Leasing (20% growth rate, 5 P/E, Rs. 130 cr MCap), the decision to sell ITC is quite simple.

not because I moved into cash, but because i moved into castrol

Moving into Castrol, Titan, Colgate or a HDFC Bank just before a crash is an good strategy for good stock pickers. For poor stock pickers like me, moving into cash is better.

Edited by smartcat - 15/Jan/2010 at 12:10pm

IP Logged

Monkey
Senior Member

Joined: 21/Aug/2009
Online Status: Offline
Posts: 770

Posted: 15/Jan/2010 at 1:43pm

Originally posted by smartcat

............ Moving into Castrol, Titan, Colgate or a HDFC Bank just before a crash is an good strategy for good stock pickers. For poor stock pickers like me, moving into cash is better.

I thought you are great stock picker based on quality of what you have collected and criteria used for buying. Why you would like to be so conservative and move into cash? I am sure you would not be too rattled by temporary downward pressure.

IP Logged

hit2710
Senior Member

Joined: 15/Jun/2009
Location: India
Online Status: Offline
Posts: 4013

Posted: 15/Jan/2010 at 2:47pm

What debt instruments do you buy? I have never held any debt instruments and hence the query. At most I have some deposits in banks.

Stockmarket is a weird place. For every person who buys a stock there is a person who sells it and both think they are very smart.

IP Logged

<< Prev Page of 148 Next >>

Printable version

Forum Jump

You cannot post new topics in this forum
You cannot reply to topics in this forum
You cannot delete your posts in this forum
You cannot edit your posts in this forum
You cannot create polls in this forum
You cannot vote in polls in this forum

This page was generated in 0.172 seconds.

Bookmark this Page

Most Participated Topic

Join Theequitydesk.com Today!

It’s easy to Join and it’s free.

Here's why members would love to be a part of theequitydesk.com

Equity Desk focuses on why to buy shares and invest in share rather than what to buy.
Live discussion forum wherein members can discuss the current Indian share Market trend, BSE Sensex or the Nifty Index.
Have huge cache of information on Indian and World Share Market.
Analysis of Indian stock market, Global events, Investing insights, portfolio management strategies and thoughts,
Meet investors from round the globe check their investing strategies share experiences and learn for their experiences on stocks and shares, evaluate opinions on investing in India.

Register now while it’s free!

Already a member? Close this window and log in.

Join Theequitydesk.com Today!

Here's why members would love to be a part of theequitydesk.com

Join Us Close