If you followed my reviews… !

Since I started posting weekly portfolio review from 24th April in my blog, I have been listing a number of shares that are best buys in my watch list each week.  Here I am trying to illustrate what would be the position of your equity portfolio now if you had been following these best buys.

In this illustration, I assume that you invest Rs. 5,000 on a single buy order and follow the rules of a disciplined investor.  So you understand that you will not be buying any company for the second time until you own shares of about 10 companies and anything again from the top 10 unless the total value of the top 10 is less than 70% of the total value of the portfolio.  Also you will not be buying anything from the same sector again until your investment spread across about five sectors.

As such, by now you would have built up a portfolio of 12 companies spanning across 8 sectors. At the initial stage, the objective is to build up a strong portfolio in small steps. Don’t think about the return in this short period of time. Remember that now it is just 2 months and all shares bought are with a long term perspective. You would have noticed that the target given is for three years and if we attain the target before three years, we may sell. But on a quarterly basis, the target may be reviewed.

So here is the portfolio that you have built up according to weekly portfolio review good buys list. Or download the Excel file.

Equity Portfolio by Transaction
Date Company No. of Shares Buy Price Investment
24 Apr 2010 Bharti Airtel 17.00 297.70 5,060.90
24 Apr 2010 Tata Comm 18.00 277.60 4,996.80
24 Apr 2010 NIIT Tech 28.00 177.70 4,975.60
02 May 2010 Hero Honda 3.00 1,904.95 5,714.85
02 May 2010 Crompton Greave 19.00 263.50 5,006.50
02 May 2010 Cadila Health 9.00 564.50 5,080.50
08 May 2010 HUL 21.00 234.70 4,928.70
23 May 2010 Suzlon Energy 85.00 58.65 4,985.25
31 May 2010 NTPC 25.00 202.00 5,050.00
04 Jun 2010 Geometric 80.00 62.70 5,016.00
21 Jun 2010 Mah Seamless 13.00 388.95 5,056.35
21 Jun 2010 Biocon 16.00 309.65 4,954.40
Total 60,825.85
Portfolio Summary By Company
Company Investment Market Value Capital Gain Return % Weight Rank
Hero Honda 5,714.85 6,149.85 435.00 7.61% 10% 1.00
Cadila Health 5,080.50 5,785.65 705.15 13.88% 9% 2.00
HUL 4,928.70 5,597.55 668.85 13.57% 9% 3.00
Mah Seamless 5,056.35 5,136.00 333.60 1.71% 9% 4.00
Geometric 5,016.00 5,102.50 79.65 6.65% 8% 5.00
Biocon 4,954.40 5,288.00 86.50 1.61% 8% 6.00
NIIT Tech 4,975.60 4,984.00 8.40 0.17% 8% 7.00
Crompton Greave 5,006.50 4,903.75 –          137.00 -3.24% 8% 8.00
Suzlon Energy 4,985.25 4,823.15 –          102.75 -2.75% 8% 9.00
NTPC 5,050.00 4,913.00 –          162.10 -2.03% 8% 10.00
Tata Comm 4,996.80 4,626.00 –          370.80 -7.42% 7% 11.00
Bharti Airtel 5,060.90 4,470.15 –          590.75 -11.67% 7% 12.00
Total 60,825.85 61,779.60 953.75 1.57% 100%
Portfolio Summary By Sector
Sector Investment Market Value Capital Gain Return % Weight Rank
Pharma 10,136.85 10,921.65 784.80 7.74% 18% 1.00
IT 9,930.00 10,272.00 342.00 3.44% 17% 2.00
Power 10,056.50 9,816.75 –            239.75 -2.38% 16% 3.00
Telecom 10,057.70 9,096.15 –            961.55 -9.56% 15% 4.00
Auto 5,714.85 6,149.85 435.00 7.61% 10% 5.00
FMCG 4,928.70 5,597.55 668.85 13.57% 9% 6.00
Metal 5,016.00 5,102.50 86.50 1.72% 8% 7.00
Engineering 4,985.25 4,823.15 –            162.10 -3.25% 8% 8.00
Total 60,825.85 61,779.60 953.75 1.57% 100%


Disciplined investor

Let me share with you the investment techniques and methods that I follow for self discipline in equity investment. It is not possible to time the market as we cannot say how far it will go up before it crashes, and how far it will go down before it bounces back. It is also necessary to avoid over exposure to a single company or sector. Diversification in sector and companies is also important, as the investment is made with a long term objectives and based on the estimate and expectation of future performance of the company and sector which may go wrong! For a disciplined investment, I set following limits and restrictions in my portfolio.

  1. I do not invest more in any company which comes in my top 5 holding in terms of current market value. (It means to add these shares again, it should come out of my top 5)
  2. I do not invest more in any company which comes in top 10 holding if the total current market value of top 10 holding is more than 70%. (you may set your own, 50%-80% would be appropriate)
  3. I do not invest in a sector which is more than 20% of total market value of my holding. (I have different percentage for different sector, but on an average take it as 20%. You may set your own limit also)
  4. Each buy is in small lot. (If you have lump sum cash to invest, spread it to invest over a number of weeks or months especially when market is high. You can adjust the pace according to the availability of good buys. For example, if you have 100,000 right now, invest 5,000-10,000 every week).

These tips are not for traders in shares. These are appropriate for people who want to invest their money for long-term in the good business to create wealth slow and steady! Over the years, you build up a portfolio of good businesses!


Weekly Portfolio Review – 26 Jun 2010

Good buys in my watch list

Company Sector Current price 3 years Target Expected Return
Bharti Airtel Telecom 262.95 531.00 102%
Maharashtra Seamless Metal 392.50 703.00 79%
Hindustan Unilever FMCG 266.55 450.00 69%
Crompton Greaves Engineering 253.85 394.00 55%

Return

Month to date, HLL gained most in my portfolio – 12.50%. Biocon, Berger, Tata Tea, Dabur India and L&T gained more than 8%. HCL Technology and NTPC lost 6.33% and 2.9% respectively in the month to date.

Drops Portfolio BSE Sensex NSE Nifty
This Week 1.37% 0.02% 0.12%
This month 4.60% 3.72% 3.59%
This Year 4.76% 0.63% 1.31%
Since 1-4-2007 79.12% 34.44% 37.88%
Since 1-1-2008 44.18% -13.03% -13.33%
Since 1-1-2009 114.51% 82.18% 78.07%
Since 1-1-2010 4.76% 0.63% 1.31%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return
Infosys IT 17% 34 months 66%
Tata Tea FMCG 11% 19 months 121%
Bharti Airtel Telecom 9% 5 months -10%
Dabur India FMCG 7% 39 months 151%
Gujarat Gas Energy 6% 25 months 143%

Shares I bought this month

Company Average Price
NTPC 200.90
Maharashtra Seamless 389.50

Shares I sold this month

Company Average Price
NIL

Top 5 most gain (absolute)

Company Return Average Holding Period
Gujarat Gas 143% 25 months
Dabur India 151% 39 months
Tata Tea 121% 19 months
Berger Paints 86% 40 months
Infosys 66% 34 months

Archive of previous portfolio reviews


Weekly Portfolio Review

The major gainers in my portfolio in the month to date are L&T, HUL, Berger Paints, Crompton Greaves and Biocon and with no major losers. It helped a 3.18% gain in my portfolio in the month to date.

Return

Drops Portfolio BSE Sensex NSE Nifty
This month 3.18% 3.70% 3.47%
This Year 3.35% 0.61% 1.18%
Since 1-4-2007 76.70% 34.41% 37.71%
Since 1-1-2008 42.23% -13.05% -13.44%
Since 1-1-2009 111.61% 82.14% 77.85%
Since 1-1-2010 3.35% 0.61% 1.18%

Good buys in my watch list

Company Sector Current price 3 years Target Expected Return
Bharti Airtel Telecom 264.85 531.00 100%
Maharashtra Seamless Metal 388.95 703.00 81%
Hindustan Unilever FMCG 257.30 450.00 76%
Crompton Greaves Engineering 252.60 394.00 56%
Geometric IT 64.00 98.00 54%
Biocon Pharma 309.65 468.00 51%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return
Infosys IT 18% 34 months 67%
Tata Tea FMCG 11% 19 months 112%
Bharti Airtel Telecom 9% 5 months -9%
Dabur India FMCG 7% 39 months 134%
Gujarat Gas Energy 6% 25 months 135%

Shares I bought this month

Company Average Price
NTPC 200.90

Shares I sold this month

Company Average Price
NIL

Top 5 most gain (absolute)

Company Return Average Holding Period
Gujarat Gas 135% 25 months
Dabur India 134% 39 months
Tata Tea 112% 19 months
Berger Paints 86% 40 months
Infosys 67% 34 months

Archive of previous portfolio reviews


Weekly Portfolio Review – 04 June 2010

The major gainers in my portfolio in the month to date were HUL, Bharti Airtel, Dabur India, Berger Paints and Crompton Greaves and major losers Glenmark Pharma and Biocon. It helped a 1.80% gain in my portfolio in the month to date.

Return

Drops Portfolio BSE Sensex NSE Nifty INR/AED
This Week 1.89% 1.51% 1.36% -0.64%
This month 1.80% 1.02% 0.97% -0.32%
This Year 1.96% -1.99% -1.26% 0.00%
Since 1-4-2007 74.34% 30.95% 34.38% -7.10%
Since 1-1-2008 40.33% -15.29% -15.53% -17.76%
Since 1-1-2009 108.78% 77.44% 73.56% 3.74%

Good buys in my watch list

Company Sector Current price 3 years Target Expected Return
Bharti Airtel Telecom 276.30 531.00 92%
Hindustan Unilever FMCG 251.50 450.00 79%
Crompton Greaves Engineering 247.45 394.00 59%
Geometric IT 62.70 98.00 57%
Hero Honda Auto 1989.65 2972.00 50%
Tata Power Power 1239.20 1840 48%

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return
Infosys IT 17% 34 months 64%
Tata Tea FMCG 11% 19 months 104%
Bharti Airtel Telecom 10% 5 months -5%
Dabur India FMCG 7% 39 months 142%
Gujarat Gas Energy 6% 25 months 130%

Shares I bought this month

Company Average Price
NTPC 200.90

Shares I sold this month

Company Average Price
NIL

Top 5 most gain (absolute)

Company Return Average Holding Period
Dabur India 142% 39 months
Gujarat Gas 130% 25 months
Tata Tea 104% 19 months
Infosys 64% 34 months
Berger Paints 77% 40 months

Archive of previous portfolio reviews