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Portfolio Check Up
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tigershark
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Quote tigershark Replybullet Posted: 18/Oct/2009 at 8:06am
easily the longest snake in bloreLOL
understanding both the power of compound return and the difficulty getting it is the heart and soul of understanding a lot of things
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Vivek Sukhani
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Quote Vivek Sukhani Replybullet Posted: 18/Oct/2009 at 8:36am
Just a point to make on your objectives and strategy....I guess you need to make some very perfect and 'timely' moves to achieve your desired objectives. Buying is no longer your problem, but until and unless you back it up with solid selling strategies, you will not achieve your objective that very easily.
 
With my very limited experience, I can say that selling the excess over X amount every month so keep the portfolio at the level of X just sounds good as a strategy but its difficult to get it that way and also, it seldom helps in maximising returns.
 
A better strategy will be not have strategy for the exits and it should be totally freestyle approach. Play the selling game like Virender Sehwag...if the ball is to be hit, just hit it hard. There should be any half way measures when it comes to selling.
 
The best thing about your portfolio is that you have done it totally based on your style. You havent given undue importance to any investment guru and you have bought stocks on your conviction. This is one business, where the importance of not having a Guru or an idol cannot be overstated. Your experience will be your best Guru.
Jai Guru!!!
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Vivek Sukhani
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Quote Vivek Sukhani Replybullet Posted: 18/Oct/2009 at 8:40am
Originally posted by kulman

Higher the number of stocks - lower will be my attachment towards it.


I guess this strategy works in romantic affairs, not sure about capital market though.


 
I agree with you Kulman Sir. Its your conviction which makes you attached with the stock. Infact, with me, I have almost zero attachement with the stock which has the maximum percentage of the value. If a bishop gets killed and you can create 5 pawns out of it, its better to let that bishop be killed.
Jai Guru!!!
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Hitesh Shah
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Quote Hitesh Shah Replybullet Posted: 18/Oct/2009 at 10:07am
Originally posted by smartcat

It is official now - I am ashamed to report that I have now become a "value investor". I uploaded my portfolio into value research online and under 'analysis' tab, the investment style is showing as "value".
 
....


Is it value because of the price at which you got in or is it value because they classify stocks into value, growth, etc. ?

Please clarify, O Master of 92 mistresses ......

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smartcat
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Quote smartcat Replybullet Posted: 18/Oct/2009 at 10:19am

I do not have much experience in the subject of college romance - there were 200 guys for 3 girls in the Mech Engg deparment - so can't comment on that! But for me, letting go smaller percentage stocks is a lot easier.

Plus, if it is better to buy 6 apartments of 1000 sq ft each and get Rs. 8000 x 6 tenants = Rs. 48,000 as rent rather than buy a 6000 sq ft bungalow and wait for a tenant who would pay Rs. 48,000 every month to move in.
 
If dividend yield is important, mega-diversification is required. Plus, I actually like all the companies I've invested in.
 
you become eligible to write a book 
 
Don't tempt me!
 
easily the longest snake in blore
 
If vivek ever publishes his full portfolio, you will get the largest anaconda in Kolkata.
 
With my very limited experience, I can say that selling the excess over X amount every month so keep the portfolio at the level of X just sounds good as a strategy but its difficult to get it that way and also, it seldom helps in maximising returns.
 
I agree about the lower returns part, but it is a risk-reward tradeoff. Even with all the SELL indicators I am collecting, there is a chance that all of them fail to detect a big crash. No indicator can detect a border skirmish or a large terrorist attack for example.
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kulman
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Quote kulman Replybullet Posted: 18/Oct/2009 at 10:24am
O Master of 92 mistresses ......


Let 'x' be the number of days for individual scrip

x = 365 / 92 = 3.9673

Since x > Pi
the portfolio will out-perform MSCI-EM index








Edited by kulman - 18/Oct/2009 at 10:25am
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Vivek Sukhani
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Quote Vivek Sukhani Replybullet Posted: 18/Oct/2009 at 10:34am
What surprises me is the fact that the Pareto effect is yet to take effect in your portfolio. May be thats because its a newly constructed portfolio. But you will gradually see that 80 p.c of the portfolio's value will be concentrated in 20 p.c( approx 19, in your case) of the total no. of stocks.
 
Nice to see someone collecting stocks like a philatelist collects stamps. This is very often said about me, but I think you also seem to be fitting this bill.
Jai Guru!!!
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basant
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Quote basant Replybullet Posted: 18/Oct/2009 at 10:38am
Originally posted by kulman

O Master of 92 mistresses ......


Let 'x' be the number of days for individual scrip

x = 365 / 92 = 3.9673

Since x > Pi
the portfolio will out-perform MSCI-EM index



LOLLOLLOL



Edited by basant - 18/Oct/2009 at 10:38am
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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