Here I present a real, value investing, portfolio of Indian stocks, styled "Portfolio 2K15". This portfolio was created in February 2015. We will take our value investing journey along this portfolio and will continuously share our experiences, both good and bad, in the years to come.
When this portfolio was started, the Indian stock market was on its high, and there were only a handful of companies that fulfilled the various value investing criteria, especially relating to affordable market price.
This is a typical Indian middle class portfolio, built with an intention to prove that even with a small monthly contribution, good portfolios can be built over long periods of time. This portfolio has been accumulated by a contribution of about Rs.20,000/- a month. Such a sum of money is easily spent on wasteful expenditure by average young employees working in software/ BPO/ IT companies.
This portfolio has a few brilliant performers, which we will study deeply in weeks to come, for example NMDC and SJVN, a few laggards, namely Neyveli Lignite, and a few which should not be in the portfolio at all but included just for name sake as otherwise they are highly sought after stocks invariably by all mutual funds, namely SBI and NTPC.
Two Exchange Traded Funds (ETFs), namely NIFTY and NIFTY Junior are included to merely to compare how our value investing portfolio has performed compared to the benchmark indices, over long periods of time.
Our regular posts will refer to stocks found in this portfolio.
Needless to mention that this is a real and dynamic portfolio and will be changing with monthly contributions of about Rs.20,000/-.
When this portfolio was started, the Indian stock market was on its high, and there were only a handful of companies that fulfilled the various value investing criteria, especially relating to affordable market price.
This portfolio has a few brilliant performers, which we will study deeply in weeks to come, for example NMDC and SJVN, a few laggards, namely Neyveli Lignite, and a few which should not be in the portfolio at all but included just for name sake as otherwise they are highly sought after stocks invariably by all mutual funds, namely SBI and NTPC.
Two Exchange Traded Funds (ETFs), namely NIFTY and NIFTY Junior are included to merely to compare how our value investing portfolio has performed compared to the benchmark indices, over long periods of time.
Our regular posts will refer to stocks found in this portfolio.
Needless to mention that this is a real and dynamic portfolio and will be changing with monthly contributions of about Rs.20,000/-.
You've got a lot of companies with government holdings in them. Right from HindZINC. Very idiotic in terms of diversification, and very stupid in putting all your eggs bases on the "Value". They're cheap because of one reason: They're government linked.
ReplyDeletemost of them give good dividend.. i think its very good portfolio..
DeleteMy dear friend!
DeleteThank you very much for the comment, though a bit too harsh!
It is not out of any special love or fancy for government companies that I have included them in the portfolio. There were a few good reasons for doing so:
1. All these companies were consistently showing very healthy EBT and PAT figures. Many of them still show.
2. They pay goo dividends. An order forces government companies to distribute 30% of their profits as dividends. NMDC Ltd. has a dividend yield of above 10%, which being tax free is fantastic! Private companies are stingy when it comes to paying dividends.
3.Only these companies shares were trading at reasonable PE Multiples. Even I love to buy Gillette, Nestle, etc., they are trading at 50 PE multiples and certainly not affordable.
And finally only time can tell weather investment decisions are prudent. Till that time let us reserve the final verdict and let us be engaged in a positive and constructive way.
Thank you,
With Best Regards
Anand
Mr anand, how could i get in touch with you, could i please request you for your email address.
ReplyDeletethanks
Nice article. I liked very much. All the informations given by you are really helpful for my research. keep on posting your views. of require
ReplyDeleteca firms delhi for company registration and tax return services delhi then pls click on it.