Monday, June 3, 2013

Spring cleaning and my current stock portfolio


One of the reasons I have a reasonably good track record in stocks is because I accept my mistakes and sell without any emotional involvement.

So here I am, selling a few stocks in the coming days – the timing of the sell depends on the market.

I am selling BHEL – where I have made a loss of 19% over two years.  So, assuming my expectations of 20% per annum, I have actually lost 60%. I was hopeful of the power sector story – but the coal scam is unlikely to be resolved till elections time - and I have lost my patience on this one. I have many friends in BHEL and I know it is a good PSU and I am still hopeful that things will eventually do well – and so I may enter this stock again in the future – but right now, I am selling it.

I am also selling Noida Toll Bridge – this is a safe company and it should have shown a ROI of 20% per annum - but has not. I have just made 2% over the past 18 months and that is not a good record. So I am selling it.

Post this sale,  my one year plus portfolio will consist of Page Industires, Havells, Sundaram Finance, HDFC bank, Bajaj Auto, Crisil, Agrotech Industries, Gruh Finance, TCS,  Swaraj engines, Maruti Suzuki,  Dabur India,  L&T, TTK Prestige, Colgate and Shriram Transport finance.  As I see it, all these are good companies worth holding for the long run.