How did my Portfolio move ?

How did my portfolio move ?

Hello folks, welcome to CCB. In today’s post I’ll be talking on how my portfolio moved in the past 3 years.

I began investing in 2018 and since then I’ve seen both the ugly and ultra bright side of stock market. Besides that since we had the pandemic, I was able to see how the market behaves in worst situation. Talking about the bad thing, some of my small cap stocks got delisted. Talking about good things many of my small cap gave over 100% return and one stock gave over 1000% return . I always had the chance to set a stop loss on my bad investment but I didn’t because even blowing the entire 100% wouldn’t affect my life in a significant way, that’s not because I’m rich but it’s because I take risk in such a quantity that I can handle. Imagine there are 8 runners in a race, the runners who come in the first three positions are usually the large cap stocks, but imagine a good runner doing a false start, in such a case she or he would be out of the race. On the other hand imagine a newbie runner acing the race. I watched one of the race where a novice runner didn’t make it to the top three and in the next few Olympics that person aced in every race he participated. Well coming to stock market the same can happen occasionally. And in some cases there are only 3 runners. For example, in the telecommunications sector the three players are Airtel, Jio and Vodafone Idea. There is BSNL too but I’m not taking that into account. The strategy in which I invest usually involves investing in the competitors too. Note, you can always have a stop loss. Sometimes you need not wait for the entire race to end, you’ll know who would be a likely winner within few metres, this few metres is what I call stop loss. If the price of the stock is ₹10 and it falls to ₹9 then exit. On the other hand the top runner can help you recover the losses and make profit. In my case Airtel was trading at ₹400 and recently it hit ₹600 and then it again fell. On the other hand Vodafone Idea collapsed real bad. Jio was out of my budget because it falls under Reliance Industries and the price of the stock is quite expensive. Initially I thought Jio was under RCOM and had invested in it. I traded RCOM twice and made profit on both trades. However, I don’t advise you to invest in it because it’s a penny stock and the fundamentals aren’t great.

Moving onto my favourite stocks the first one was a toothpaste company. It was trading at ₹1200 and recently it hit ₹1700. You know that stock, don’t you ? Yes, it’s Colgate Palmolive. I love FMCG stocks, the other stocks I invested were ITC, Marico, Dabur etc. I wanted to invest in Nestle and Page Industries but they were out of my budget. One of my FMCG stocks got delisted and it’s name is Kwality.

When it came to picking a stock the procedure I followed involved peer comparison and profit. I invested in profit making small caps but some tumbled. The reason for this could be lack of funds or poor management to name a few.

Let me now tell you the reason why I invest in small caps. Small caps are dangerous but they also happen to give ultra huge profits if things go well. One of India’s top investor got a stock for ₹3 and then the stock went over ₹1000 in the due course of time. Imagine a thousand rupees stock going to ten thousand rupees and on the other hand a five rupees stock going to ₹1500. In which case is the return maximum ?

If you want to invest in small cap you should first invest in large cap. Let me tell you the reason. Large caps give dividends. You can use a certain portion of your dividends to buy more of large cap, those who read my Stock Lesson 01 may be familiar with Dividend Reinvestment plan. If you don’t know what it is kindly check out that post. Well, another small portion of the dividends can be used to splurge on things you love. The remaining tini tiny portion can be used to buy small caps. For example, if you get ₹10 dividend. Spend ₹5 to buy more of large cap, ₹3 on things you love and ₹2 to buy small caps. Note, when I say ₹2 I’m not mentioning the price of the small cap, the price may even be ₹5. I mean 20% of your dividend. Note, this isn’t a golden rule you can change the percentage to five if you don’t like risk and also there’s a chance of you making decent money by investing back in large cap than betting on small cap. Note, I haven’t taken tax into account.

Well moving back to portfolio, I did invest in some real estate stocks. I made profit on DLF, Prestige Group etc, one small cap real estate company was Country Condos I made profit on it and I sold it. I made loss on day trading GMR Infra. Nitesh Estates collapsed, so was Citadel. Companies like HUDCO were stagnant but recently they moved upwards. Also some gave dividends. I also own few quantities of VKJ Infra which is currently trading at ₹0.24 . When I did the analysis I only checked for profits as mentioned earlier. So I got small caps but few under performed. Well there are a lot of reasons for it and I’ll explain it in another post.

I also invested in shipping companies. One was Mercator, I got the stock for ₹10 point something and within few days it moved to ₹17. However the current price of it is less than ₹3. Another shipping stock was Shahi Shipping and for some reason it doesn’t appear in my Zerodha Kite.

Next comes banking, one bad investment was Dena Bank. I don’t know what happened to it, whether it merged or went to zero. However, banking also happens to be the place I made most money. I also had stocks like ICICI Bank and ICICI Gold which I sold for a profit.

Well those were some of the stocks in my portfolio. I took diversification too seriously and invested in hell lot of companies. One con of this is, keeping track of it is pretty hard. In fact I only check the number of companies in my holding, just to check they don’t get stolen.

Coming to my present portfolio condition. I’ve dumped 90% of my money on one stock. I day trade that however I also hold a long position. Meaning I sell the stock for a certain price and buy back the stock for a price lower than that. The stock remains in my holding because I sell the stock from my holding and buy it back the same day. For more info on day trading check my post Day Trading for Beginners. Well, do you want to know the stock I day trade. Well, I charge ₹100 for it. Currently you can pay me via Paytm and send the screenshot to +91 9964813325 via WhatsApp . Or also do Google Pay or Phone Pay to the same number. I have QR code for Paytm on my website, I’ll be updating the rest soon.

P.S. I also mentioned that I made 1000% on one stock right ? Do you want to know which stock that is ? I only charge ₹5 for the answer. The procedure remains the same, pay me ₹5 and send the screenshot, I’ll tell you the answer. Note, take the screenshot of transaction id too, because I may ask it.

Here’s the screenshot of 1000%.

Note this is only for reference purpose. I’m not telling you to invest in it. You can check the price of past three years to verify the screenshot.

Well folks, that was it for this post. See you next time with a different post. Byeee 🙂