some mistakes in equities…
In the recent past I have made some mistakes in equities…here are a few….
1. Buying EID PARRY at 155, then averaging at 140: I still do think that sugar being decontrolled is a good thing to happen, but this investment is going to take a long time to make money for me. 3 to 5 years is what I think I will have to wait for. This is because of the interest burden that it will have, and the probable dividend cut from the fertilizer subsidiary Coromandel International.
2. Buying Wendt India at 1500 – or thereabouts. Now the price is about 1100. Not that I am worried about the quality of management, but I hurried a little bit. Well my thoughts.
3. Buying Hindustan Oil at 107, Mahindra forging at 47, Mahindra Holiday Resorts (feeling terrible because I had sold at 568!) at 289, Jyoti Structure at 46, Century Enka at 200, …..- this is far greater than what I normally buy in one year – esp as a longer term bet…
4. Sold some Coromandel International to buy Shanti Gears, and Sabero – wish I had sold more Coro!! Sold some Shanti gears at a profit, have kept some. Traded multiple times in Sabero – only wish I had done more quantity (read link below too!)
5. Not buying enough of debt instruments – but I do believe that my equity returns over 5-7-10 years will compensate for this error.
6. No Gold in my portfolio at all. However there is some kept in my wife’s locker!! (not sure if this is a mistake)
7. Not contributing in my PPF for the past year – some kyc related issues…gggrrrrrrrrrrr. aka laziness.
also read the following note..a note written some time ago…
http://www.subramoney.com/2011/03/share-worth-buying-my-view/
Mira D
Hats off for sharing this list.
Surely the good/right moves outweighed the mistakes.
Just a gentle reminder.
girish
Your post would have been more useful had you mentioned the reason for buying them. Frankly, none of them look interesting. ( I am not saying this because it doesn’t have the so called blue chips like the reliances, l&ts, bhartis, infosys’s etc). In case of eid and coro (to some extent sabero and shanti since they have stake there), good thing is the management integrity. ( which is very important in today’s scenario). but not sure if those business’s are worth investing in.
subra
that is not so difficult Girish. I have bought Reliance from 735 onwards till 800, and do not consider it a mistake. Ditto Bharti 260-280. I do not consider lnt and infy as blue chips anymore. Prefer TCS. Infra will stick to power.
EiD: this addition was because of sugar decontrol. Share is still a good hold, so will hold. Wendt: timing was wrong. No regrets except the price, but not in a hurry to sell, maybe will buy at 900. HOEC the oil story, obviously gone wrong. Not yet sold, but may junk it at 70. Mahindra Forging will wait for the auto turnaround. Mahindra Hol Resorts – got greedy and thought it was a part of a transaction – had earlier sold at a good price and was buying at almost half the price (eeks!). In a food country fertiliser and pesticides are important – and these cos. are best in the class. Shanti again waiting for 3-4 years is not an issue…like u said good management. Only thing is my portfolio has tooooo much of Murugappa…:-)
Srinivasan M
Subra sir,
Thanks for sharing your thoughts.
While you are keeping us informed on your portfolio transactions and your mistakes and how to avoid them. It would benefit us, if you can throw some light about your portfolio allocation strategies. Like what will be the maximum/minimum percentage you will bet on a single company/management, What will be your minimum holding period if facts do not change, What % is long term investment, what % is opportunistic trading, what % is cyclical bet, what % is for speculation, what % is for arbitrage. What % is the core portfolio and what % is satellite one. I know this might take time/effort, since yours could be old and big portfolio.
GAURAV
Subra Sir,
any comments on ICIC Bank, is it a good buy at current levels for few years, the bank is most advanced in technology, I am a bank user since 10 years and never had any complaint, most of the things can be done online, the thing dificult to understand is corporate loans and so called NPA’s which i guess you are the best to answer.
Thanks
Mira D
I’d be interested in your asset allocation thinking as well.
of course, all disclaimers apply.
subra
my asset allocation strategy will not make sense at all in % age terms. My next 10-12 years expenses would be in debt – ppf, etc. My current income also will be enough to meet my income for a long time..So all the excess is in equity. In %age terms that will be in the high 90s 🙂 So irrelevant for most readers in %age terms.
archana
Subra sir,
What do you think of Balmer Lawrie.
It has a good dividend paying track record, robust business.
Is attractively priced after the bonus issue.
I am planning to keep this stock in my retirement kitty.
girish
thanks subra. appreciate your reply. (btw i didn’t mean to call riil, infosys, bharti etc a blue chip. i wrote so called blue chips)
Mira D
Thank you, that helps.