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hit2710
Senior Member
Joined: 15/Jun/2009
Location: India
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Posts: 4013
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   Posted: 26/Apr/2010 at 8:34pm |
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TED has changed certain aspects of my investing strategy.
First of all going thru the posts of some seniors, and reading Pabrai, I have adopted the style of betting hard on stocks where I have a lot of conviction. Earlier I used to bet small amounts which did not materially impact my portfolio returns.
Secondly TED has helped me in sticking to my convictions in stocks inspite of negative news/stories in some of them.
And finally I have developed good rapport with lots of knowledgable TEDDies from whom I can get great insight and corroborating views and criticism and that helps a lot. All of them give good solid and quick advice on something which perplexes me. And over time, this kind of interaction helps in picking excellent stocks at very good entry points. Earlier I had no one with stock market knowledge as friends and now suddenly i have a lot of them and that is thanks to TED.
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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.
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samirarora
Senior Member
Joined: 11/Jan/2009
Location: India
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Posts: 1037
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Posted: 26/Apr/2010 at 8:41pm |
Kudos hiteshji, although i would only wish you got into stocks that have a good solid brand name associtated with it, but thats the criticim part.
BTW, gati, a stock that i think both of us agreed upon, that should be kind of avoided, has suddenly started spurting.. i have no regrets though, as i am betting on blue dart in the sector, but all the same, makes one wonder, dont you think?!
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hit2710
Senior Member
Joined: 15/Jun/2009
Location: India
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Posts: 4013
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Posted: 26/Apr/2010 at 8:49pm |
Originally posted by samirarora
Kudos hiteshji, although i would only wish you got into stocks that have a good solid brand name associtated with it, but thats the criticim part.
BTW, gati, a stock that i think both of us agreed upon, that should be kind of avoided, has suddenly started spurting.. i have no regrets though, as i am betting on blue dart in the sector, but all the same, makes one wonder, dont you think?! |
Hi Samir,
Regarding brand name, well most of them to me seem way too expensive.
Regarding GATI, well i made my returns and now let someone else take the risk and make more money. 
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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.
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samirarora
Senior Member
Joined: 11/Jan/2009
Location: India
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Posts: 1037
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Posted: 26/Apr/2010 at 8:55pm |
 he he he !!! yes.. i get what you mean...
BTW i had dumped gati myself, having bought it at average 56 and sold it for 62 or something, but i sold it because i did not like certain moves the company seemed to be making.. as otherwise i strongly believe in the sector as a whole. So not much benefit for me due to gati.. but have no regrets even if it goes higher.. which is basically what counts in the end... i think!!!
Edited by samirarora - 26/Apr/2010 at 8:58pm
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bijoy_ajj
Senior Member
Joined: 07/Oct/2009
Location: United States
Online Status: Offline
Posts: 184
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Posted: 26/Apr/2010 at 10:38pm |
Basantji,
I have a question for you... Don't you have the temptation of buyin good shares people come up with over here?.. Are you still concentrating upon the limited number of share ( 3-4 as you say)..?... What actually you tell to yourself from holding back and sticking to your old game plan?.. Just trying to gather wats going thru basant's head..  ..
Could you please pen down your recent portfolio here ( with price at you purchased  .. Am i getting into your skin? ) ..
One more question.. How much %(compare to your portfolio) cash reserve you always wish you keep ?
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basant
Admin Group
Joined: 01/Jan/2006
Location: India
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Posts: 18403
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Posted: 26/Apr/2010 at 9:38am |
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1) If you think of betting around 15%-30% of your portfolio into a single stock you will give many a stock a pass. The idea is not to be smart (make money from every company) but to create serious long term wealth. So if someone comes up with a buy on ABC I ask myself whether ABC is worth x percent of my portfolio and depending on the answer I act.
Plus I do not invest in cyclicals unless they are very cheap as they were in March 2009 or in companies that are not in dominant positions within their sector so that removes many a company from the investing radar.
2) We will leave that to a private discussion some day when and if we meet.
3) Almost zero to negative. I am leveraged for my basic needs and pay that off if I see that any of the stocks that I own has gone up a lot or when I receive my dividend check. Generally I have stopped being leveraged for investments but do use it for basic short term needs. Unfortunately I do not follow the theory of having 6-12 months expenditure in cash.
Edited by basant - 26/Apr/2010 at 9:41am
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hit2710
Senior Member
Joined: 15/Jun/2009
Location: India
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Posts: 4013
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Posted: 26/Apr/2010 at 11:51am |
Originally posted by basant
1) If you think of betting around 15%-30% of your portfolio into a single stock you will give many a stock a pass. The idea is not to be smart (make money from every company) but to create serious long term wealth. So if someone comes up with a buy on ABC I ask myself whether ABC is worth x percent of my portfolio and depending on the answer I act.
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I intend to follow this golden strategy. I hope people keep asking you questions and you come out with such insights.
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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.
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p_pandekar
Groupie
Joined: 04/Mar/2009
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Posts: 76
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Posted: 27/Apr/2010 at 12:12pm |
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I used to value business based on quantitative factors, i learnt quality is more important.
I used to read RD chats and take cues from there. After reading TED I learnt that if i follow RD blindly then i am not developing my own judgement. Though i pay attention to RD and TED for that matter. I give more importance to my judgment.
I learnt that holding many good stocks(diversified portfolio) will approx give the same return as holding few good stocks over the long run(unless you are a good trader). The trick is to hold few excellent stocks that you know.
I learnt not to invest in leveraged companies. I burned my fingers in some companies in 2008.
I learnt that eventually earnings drive the price of a stock. Once should have the stomach to hold and add companies that are posting good results even though the stock price is falling (hawkins, VST tillers, banco).
I learnt that two people can have different view on stocks. Basant may like hawkins and RD may like godrej properties. Both may eventually make money. You should have an independent view and buy the one that justifies your reasoning.
Thanks to basant and to all TED members for all their posts.
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