Portfolio Review: 20 August 2011

Having the number of companies in my portfolio shot up to 51, in retrospect I thought it is time to trim down to a maximum of 30. So the next question comes what to get rid off, what to retain and in what to invest more! I went back to books to refresh my mind with investment strategies of some great investment gurus of the past and present. For the last couple of weeks, I have been looking into each company that I possess and revisited the fundamentals of those companies to make an ultimate decision. Strategies of Benjamin Graham, Kenneth Fisher and Martin Zweig are mainly followed. So far completed study on 7 companies and decided to get rid off some of them. Besides that, also sold out some companies which are close to my target or have a minimal investment. Altogether, reduced number of companies by 6 and now it stands at 45. Minimum 15 more to go!

Companies sold in the current month

Honeywell Automation: Largely because of its earnings – poor growth last quarter, lack of earning persistence and acceleration. Its long term earning per share over last 5 and 10 years are also not very impressive.

Cera Sanitaryware:  It failed to meet the criteria of quarterly sales growth and long term EPS growth to qualify for Martin Zweig and long term EPS growth criteria of Fisher.

Bharti Airtel: Its debt level shot up multi-fold in the last financial year. Its debt-equity ration in no way satisfy the criteria of Graham or Fisher. Quarterly sales growth, Earning persistence and long term EPS growth are not up to the mark.

Company to retain in the portfolio

Opto Circuits India: It meets all the criteria of Martin Zweig and its valuation is also within the buy range. It also meets criteria of Graham and Fisher except that of long term EPS growth.

Page Industries: It meets all the criteria of Martin Zweig and its valuation is also within the buy range. However it fails debt ratio of Fisher and long term EPS growth of Graham.

Swaraj Industries: It meets all the criteria of Fisher and valuation is also attractive. However it fails earning acceleration criteria of Martin Zweig and it is too small company to fit in Graham’s portfolio.

Portfolio Review: 31 July 2011

It is after one month that I revisited my portfolio today. When the market is too volatile and uncertain, for a long term investor, it is good to go to hibernation for a while. I remember I kept my portfolio untouched and completely kept myself out of the market for six months a few years ago. Then when I went back, everything was well and better! And it was not quite different this time too. When the Sensex lost 3.44%, my portfolio gained 1.22% in the month of July.

The shocker was Crompton Greaves which lost 35% during the month. Mayur Uniquoter (17%), Selan Exploration (23%) and NIIT Technologies (24%) saved me!

Good buys in my watchlist

Bajaj Auto (1,464.85)

Selan Exploration (345.20)

Mphasis (447.35)

Opto Circuits (286.80)

Note: I buy shares for long term, may be for 3-5 years or even more. One should see the above buys in this perspective. It is not a recommendation to buy, but what I intend to buy.