Weekly Portfolio Review: 8th August 2010

For an investor who looks for good companies and invests with a long term perspective like me, return on a week to week basis does not really matter. How much time does one need to invest in shares? It is just 5 or 10 minutes! Yes, you don’t have to be hooked on a computer screen looking the up and down of the Sensex! Time required is to study the company in which you are going to invest, not the graph of the Sensex!

Then why do I mention here how much Sensex gained in the last week or last month or year to date! Just to show that it does not really matter as it has no relevance on return on your investment! In the year to date, BSE Sensex gained 3.89%, NSE Nifty 4.58% and my return is 6.68%. Since 1st January 2008, Sensex registered a negative return of 10.21% while my return is 46.81%!

Good buys in my watch list

Company Sector Current price 3 years Target Expected Return
Mangalam Cement Cement 155.45 400.00 157%
Graphite India Engineering 98.25 200.00 104%
Swaraj Engines Auto Ancillaries 413.50 850.00 106%
KSB Pumps Engineering 548.05 1,072.25 96%
Hindustan Unilever FMCG 255.15 462.00 81%

–          Swaraj Engines announced its first quarter result for 2010-11 last week. Compared to the same period of last year, the net revenue grew by 26% and net profit by 10%. Its despatch to Mahindra and Mahindra and Swaraj Mazda showed an increase of 22% and 15% respectively.

Drops Model Portfolio

Drops Model Portfolio is built up based on the top buy list in my weekly portfolio review. If you have been investing following my Good Buy List as above, now you would have invested Rs. 1,00,000.00 in shares of 16 companies. By investing weekly with an amount of Rs. 5,000 per transaction, we were building a portfolio of 15-20 companies! I made this illustrated portfolio to just show how you can diversify your portfolio and invest systematically to build an equity portfolio on your own. With this imaginary investment of Rupees one lakh, I will update this portfolio monthly and will publish here how it performs over time.  Download the spreadsheet for more information.

The top 5 companies:

Company No. of Shares Market Value Return % Weight Rank
Bharti Airtel 36 11,602.80 15.37% 11% 1
Crompton Greave 39 10,951.20 8.94% 10% 2
NIIT Tech 58 10,544.40 6.84% 10% 3
NTPC 50 9,865.00 -1.39% 9% 4
Geometric 80 5,796.00 17.02% 6% 5

Top gainers to date:

Company Return % Weight in Portfolio % Rank in Portfolio
Geometric 17.02 6 5
Cadila Health 14.92 6 6
Bharti Airtel 15.37 11 1
Crompton Greaves 8.94 10 2
HUL 10.50 5 9

Top losers!

Company Return % Weight in Portfolio % Rank in Portfolio
Hero Honda -3.38 5 7
Suzlon Energy -4.43 5 15
Mangalam Cement -5.18 4 16
Dr. Reddy’s -1.73 5 8
NTPC -1.39 9 4

Valappil’s Portfolio

Return (%)

Period Valappil’s Portfolio BSE Sensex NSE Nifty
This month 0.83 1.54 1.33
This Year 6.68 3.89 4.58
Since 1-1-2009 118.43 88.08 83.82
Since 1-1-2008 46.81 -10.21 -10.53
Since 1-4-2007 82.40 38.80 42.33

Top 5 holding in my equity portfolio

Company Sector % of Total Value Average Holding Period Absolute Return %
Infosys IT 13 3 Years 72
Tata Global Beverages FMCG 8 1.75 Years 110
Bharti Airtel Telecom 8 7 months 11
Maharashtra Seamless Metal 6 1 month 1
HUL FMCG 6 2 months 3

Shares I bought this month

Company Average Price
Graphite India 98.85
Mangalam Cement 158.95
KSB Pumps 562.95
Swaraj Engines 434.00

Top 5 most gain (absolute)

Company Return % Average Holding Period
Gujarat Gas 153 27 months
Dabur India 155 40 months
Tata Tea 110 21 months
Berger Paints 112 42 months
Infosys 72 36 months

Archive of previous portfolio reviews


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