105% return in a year!

In the year 2009, my equity portfolio gave me a return of 105%! At the same time, Sensex gained 81%  and Nifty 76%. For the two year period from January 1, 2008, my return is 38% while it was a loss of 14% for both Sensex and Nifty! This is the power of long term view of investment. It is not the up and down of the Sensex that determines your return. It is based on what companies you invest in! If you invest in good companies, don’t bother about the movements of Sensex. Shortlist good companies, and invest at the right price! By investing with a long term view, you don’t have to hook up in front of computer screen watching the market movement every day.

My current holdings has 15 companies which now has gained altogether 40%. Since the market has shoot up too much so fast recently, I am currently not buying any thing aggressively, but selling those which have achieved my target. I still hold some shares that I bought in March 2006! Average holding period of my current holding is 18 months. My largest holding is Infosys Technologies.

Suzlon Energy is the biggest gainer in my current portfolio which stands at 132% and I will be holding it for some more longer time. I am holding it since December 2008. Tata Communications which I bought recently is at a loss of 4%.

The highest return on shares that I sold during 2009 was on Tech Mahindra. It was sold with a gain of 270% in 10 months! And my biggest loss in one company was 92% on Gremach Infrastructure. In fact, Gremach was not a good company that qualify for investment as per my investment principle. It was a mistake.

At the moment, I would be more cautious until a correction, but would not hesitate to invest if I find a good company at the reasonable price. I don’t listen to brokers call. I depend on independent research reports, most of them paid service and some comes free. But it is worth paying. Drops Savings Investments suggest one company a month which is at attractive valuation at the time of recommendation. This recommendation is made after studying various research reports and company reports and continuously tracking its price movements and news. This is from the watch list that I track for my own investment and it is what I would be investing.

You are free to contact me at any time and it would be my pleasure to give my suggestion at any time.

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