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smartcat
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Joined: 29/Mar/2007
Location: India
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Posts: 4243
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   Posted: 20/Jun/2007 at 12:50pm |
Actually, I'm not bearish on Pantaloon as such. I just don't like stocks that stay where they are - I'm a bit impatient in that way. I like those that either go up or down!
I'm also seriously considering adding DLF to my portfolio - so that I have my own 'NAVRATNAS'. The reasoning behind this move is - I don't think I'll ever buy land/plot (for investment) or apartment (for staying).
Real estate investment (especially buying land) involves dealing with brokers, lots of paperwork, checking with lawyers to see if all papers are okay.. all these are exasperating for me.
I hear that everybody should have real estate (land or aparments) in their overall portfolio. So till REITs come to India, I hope to ride the real estate story by riding on the DLF.
Edited by smartcat - 20/Jun/2007 at 12:51pm
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catchsudipto
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Joined: 06/Sep/2006
Location: India
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Posts: 641
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Posted: 20/Jun/2007 at 1:05pm |
Actually, I'm not bearish on Pantaloon as such. I just don't like stocks that stay where they are - I'm a bit impatient in that way. I like those that either go up or down
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But my Dear Friend stock market is a game of patience . We must have patience to earn big in the market. Basant Sir is that correct?
Edited by catchsudipto - 20/Jun/2007 at 1:08pm
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Make your Life as simple as possible.
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catchsudipto
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Posted: 20/Jun/2007 at 1:21pm |
I'm also seriously considering adding DLF to my portfolio
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I feel we have missed the Real estate bus long ago. We are a bit late on it may be Real estate stock some 15 months back should have been an ideal one.
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My suggestion is that u must compare real estate stocks in the developed country/ india to get a feel about their valuation at present. They can shoot up from here but the real question is there any margin of safety in those stocks now. Whether the promoters are giving correct information about their land banks etc.
Most important question is that how will those Real estate stocks will be valued at. Whether its PE or Nav based.
Most prominent Indian investors ( including Monish of Enam) says that they should be valued at NAV basis. Then whome will u trust to evaluate a real estate company based on NAV basis? These are some concerns on real estate stocks.
Edited by catchsudipto - 20/Jun/2007 at 1:22pm
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Make your Life as simple as possible.
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smartcat
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Joined: 29/Mar/2007
Location: India
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Posted: 20/Jun/2007 at 1:32pm |
While there is not much transparency in valuation of real estate stocks, there is absolute opaqueness when it comes to buying land in Bangalore.
If you want to buy land here, you go to a broker who takes to you a 30 km drive out of Bangalore (but they always advertise it as 30 minute drive from city centre). At that place, after you avoid chickens crossing the road, you end up in a sunsaan area with hills, boulders and no civilization in sight.
The rate? Rs. 300 per sq ft.
Buying apartments doesn't make sense for me because I already have a house to stay. The rental income from a new apartment and price appreciation won't be much.
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johnnybravo
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Joined: 17/Jan/2007
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Posted: 20/Jun/2007 at 1:38pm |
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My suggestion is that u must compare real estate stocks in the
developed country/ india to get a feel about their valuation at
present. They can shoot up from here but the real question is there
any margin of safety in those stocks now.
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The tricky part here is to anticipate the growth in consumption that is being currently anticipated in the developed countries as against India. There is a tightly coupled equation between economic development and boom in construction.
So if India has to boom over the next 5-10 years, you must value real estate accordingly. That might not be the case when u compare with the US based real estate companies which form part of a developed economy.
Its analogous to buying into a small company that promises higher growth as against buying into big company that promises moderate growth.
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xbox
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Joined: 10/Sep/2006
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Posts: 2001
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Posted: 20/Jun/2007 at 1:50pm |
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RE stocks are not replacement of owing property. One should look RE stock just as a emerging sector only. A sector, which will become significant component of economy. A sector promising wealth creation if rightly picked. Finding right candidate is very important as otherwise.
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Don't bet on pig after all bull & bear in circle.
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basant
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Posted: 20/Jun/2007 at 1:56pm |
Originally posted by smartcat
After looking at vivekkumar's new portfolio concentration strategy, I got inspired and did a little bit of portfolio re-allocation too. Here's how my new portfolio looks like - my own lean mean money making machine.
Reliance Communications 24.06%
Aban Offshore 18.20%
Infosys Technologies 16.96%
Reliance Industries 11.42%
Reliance Capital 10.06%
UTI Bank 7.92%
TV18 India 7.26%
Lakshmi Machine Works 4.11%
The most obvious change is - Pantaloon is missing. I've decided to get out of Pantaloon after reading Merrill Lynch report. Also, as Basant once said, Pantaloon is no longer a value buy. Everybody is waiting for Pantaloon to unlock value by demerging - and that for me is like waiting for milk to boil or eggs to hatch.
I hope to latch on to the retail growth story in India via Reliance Industries. My Reliance Capital would be a proxy for consumer finance growth story - so I'm kissing goodbye to Future Capital too. |
Looks quite balanced except that RCOm is a bit on the higher side. The bottom 3 holdings have no relative weightage.
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'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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smartcat
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Joined: 29/Mar/2007
Location: India
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Posted: 20/Jun/2007 at 3:39pm |
RCOM is at such a large percentage because Bharti did well for me. And I transferred all the Bharti holdings to RCOM.
On TED, I have seen numerous posts that basically say that the Ambanis are not trustworthy. Why is that? Have they done anything in the past that makes them untrustworthy? I have over 45% of my stocks with the Ambani brothers.
| RE stocks are not replacement of owing property. |
You sound exactly like my dad!  I told him - Rather than spending Rs. 40 lacs on property, I would rather spend it on a luxury SUV and take it to Ladakh. Tell me which property can do 0 - 100 kmph in 6 seconds?
That's when my dad threatened to evict me out of his house.
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