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List of 40 Stocks to Invest If Your Portfolio is Bleeding

Discussion in 'Technical Analysis' started by shabbir, Mar 29, 2020.

  1. shabbir

    shabbir Administrator Staff Member

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    Is your portfolio bleeding in the current market fall? Here is a list of 40 stocks that every investor should invest in this fall.

    Continue reading...
     
  2. smuthukri

    smuthukri Active Member

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    @shabbir Sir - Just asking please don't mind , then why none of your portfolio have any of this stocks ??
     
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  3. shabbir

    shabbir Administrator Staff Member

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    Ohh I thought I had most of them. From this list my portfolio has
    • Pidilite Inds
    • Page Industries
    • Divi’s Lab
    • Marico
    • Natco Pharma
    • Amara Raja Batt
    Out of the 12 stocks in my portfolio, 6 are in the above list. Allocation wise, almost 60% of the my total portfolio is in the above 6 stocks.

    The reason my portfolio is not bleeding. The gain from Pidilite and Divis is more than enough to keep my porfolio in the green for major part of the fall. Now only it has gone into the red.

    So when the stability is there is the portfolio, I have some small cap companies to help me get better returns as well.

    Moreover, some companies I always want to have in my portfolio but then they always go up and don't allow me to enter. Other companies are too big for me to consider investing. I am fine handling the volatility as well.

    I hope it clarifies your doubt.
     
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  4. smuthukri

    smuthukri Active Member

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    thank you so much , I was in hurry to reply , i didnt check all the stocks in detail .
     
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  5. shabbir

    shabbir Administrator Staff Member

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    I assume so. You only have seen the one in the screenshot.
     
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  6. shabbir

    shabbir Administrator Staff Member

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    Just to give you visibility on the portfolio stability. Yesterday Nifty fell by -379.15 (-4.38%. My mutual fund portfolio fell by -3.2% MF.png

    Clearly the fund outperformed the Index. However, stocks gained by 0.11%

    Stocks.png
    Moreover, you can see how my stock portfolio is down by CAGR returns of 3.9% as compared to mutual funds which are giving a negative returns of 13.2%.

    This is what I even shared in in May 2018 where I invest a bare minimum in mutual funds because though they do outperforms the underlying index but I am easily able to outperform the best funds by close to 10%. Read it here https://shabbir.in/why-no-mutual-funds/

    The is the whole idea of investing is to invest in the right stocks and they will definitely help you build wealth.
     
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  7. smuthukri

    smuthukri Active Member

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    one more question ,mahanagar gas , deepak nit , Tech M and bajaj auto - with low PE and all are from different sector ,any reason for not including in your portfolio ?
     
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  8. shabbir

    shabbir Administrator Staff Member

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    They are there.

    https://www.screener.in/screens/215338/Wealth-Builders/

    Screenshot_2020-04-02 Wealth Builders - Screener.png

    Depending on the change in prices, the above screener will update accordingly. The importance is the process and why each criteria has been added for
     
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  9. smuthukri

    smuthukri Active Member

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    thanks but sorry my question was different .Why you didn't consider investment with such low PE stocks.
     
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  10. shabbir

    shabbir Administrator Staff Member

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    I am not able to understand? I have an investment in my portfolio in Amara Raja Batteries.
     
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  11. smuthukri

    smuthukri Active Member

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    agree with you but Mahanagar gas , Tech m , Bajaj auto ,Ambuja cement - are there very low PE in your queries but you avoided investing ,any reason for that is my question .if i am going too much in to your queries then please ignore my question .
     
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  12. shabbir

    shabbir Administrator Staff Member

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    Not at all. I like to be transparent and so there isn't too much for anything.

    Coming to your query, these are great stocks with a criteria. It doesn't mean you should invest in each of the 40 stocks. Moreover, PE is not the only factor to invest or else no one would invest in DMart for sure.

    Growth and future outlook are few other parameters to consider. Moreover, one should also be convinced about the business as well. Last but the most important of all is one should understand the business.

    The four stock you mention Mahanagar Gas, Tech M, Bajaj Auto and Ambuja Cement do not satisfy my criteria of USP in the business.

    https://shabbir.in/investment-checklist/
    and
    https://shabbir.in/fundamental-analysis/

    Once the stock qualifies the above checklist and analysis, I analyze the business on the following parameters

    https://shabbir.in/business-checklist/

    If you go through the list, you will see my choice of companies has to have something that no other company has.

    Considering that, can you say the gas produced by Mahanagar Gas is different and unique? Can you say the services offered by Tech M can't be offered by INFY or TCS? Are bikes of Bajaj Auto different from Hero Honda or Honda for that matter? Can Ambuja produce cememt that is different from other cement players?

    Answer to those question will give you why I don't invest in each of those companies. These may be great companies but I am not a fund manager who need to invest in each. Its my portfolio and I want to invest heavily in few companies that are best among the best.

    Again, there will be some companies in my portfolio that produces yet another kind of products as well. One can say Page Industries produces inner ware which are similar to Lux Industries. This is when I compare the products and its OPM https://shabbir.in/opm/

    Finally, if I had to invest in all of them, I may be short on cash as well. Because the way I research in deep about a company and invest significantly in it.

    Hope it clears the doubt but if you still have questions, feel free to ask them as you like. Nothing is too personal. We all are learning here and who knows I may be able to learn about a company and invest in it.
     
  13. smuthukri

    smuthukri Active Member

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    Thank you so much ,that clear all my doubts .thank you
     
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  14. shabbir

    shabbir Administrator Staff Member

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    The pleasure is all mine.
     
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  15. smmubarakqc

    smmubarakqc Member

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    Dear Shabbir,

    I am your follower ... You are one of the great of greatest in stock market.. I have one query which was in my mind when i joined in our team... Why your portfolio is NOT having any Bank or NBFC stock... Is there any specific reason you not added these stocks.... This question may be silly... but i eager to know your mind set....
     
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  16. shabbir

    shabbir Administrator Staff Member

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    There are multiple reasons I don't own them and one of them being as a Muslim you should not be indulging in interest related companies. However, there are many other reasons I will list them for you
    1. In most cases, there are two types of companies who have gone out business. Lenders and leveraged business. I try to avoid both.
    2. I don't understand the business of financing that well. The reason being I am not from the financing background.
    3. In banks promoter has to reduce their stake. I never understood the concept as to why. My thought is more stake of the promoter means they have more interest to perform. I am too layman to understand.
    4. Cash is the commodity for the banks. More cash means more sales. So they sell cash in the form of loans. Promoter sell stakes to bring in cash to do more business. This cycle is way beyond my understanding. What happens beyond a point.
    5. I don't find them unique. As a customer, what is the difference a loan from HDFC Bank or ICICI Bank. However, HDFC Bank has re-invented itself in terms of efficiency.
    6. The reason for 2008 financial crisis was companies lending to sub prime properties. In simple terms, people lend without too much of due diligence.
    7. In India there is no reason to pay back a loan. Lenders were (not are) at the mercy of the customers to pay back. After IBC things are changing though.
     
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  17. smmubarakqc

    smmubarakqc Member

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    Thank you very much for detailed analysis and feedback about Bank.... I understood the concept behind the bank business .. I too will not invest in banks or NBFC in future .... thanks once again....
     
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  18. shabbir

    shabbir Administrator Staff Member

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    The other option is trying to understand. One more thing you may not have notice is I don't invest in service based IT companies though I am into web development. I understand the business but then I am not convinced how a company like TCS is different or unique than INFY. They don't have unique products or provide something that is unique. We don't have product based companies like Apple, FB or Google in India.

    So the understanding of the business and convinced about the business is the most important aspect to investing.
     
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  19. nirajshah

    nirajshah Champion

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    This is so enlightening. Understanding of business is so important and yet most of us miss including me. Warren Buffett invested only in companies he understood.

    Sent from my Redmi 6A using DIY Technical Analysis mobile app
     
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  20. shabbir

    shabbir Administrator Staff Member

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    Exactly. I will share one incidence with HDFC Bank that I think will be the case for any lenders in India.

    I have a fairly high usage of credit cards and has never missed on any payments. https://shabbir.in/manage-credit-cards/

    So my credit score is very good https://shabbir.in/credit-score/ and I also have a pre-approved loan in my HDFC Credit card all the time.

    Moreover, I was at that time and still is a classic customer.

    When I was in Kolkata and willing to purchase an office space, I was looking for a loan of 25L. The property had some clearance issue for loan and so I thought as I have 15L of pre-approved personal loan, I can manage a 25L if I mortgage my house.

    Now I have a personal loan pre-approved for 15L at 15% per annum. I told my RM to make it 25L and I am ready to mortgage my house for the extra loan. Even I am ready to club my wife in the same. She also had a pre-approved loan of 1 to 2 L in her cards.

    Both me and my wife's account combined we can have a personal loan. However, for property loan the eligibility was only 10L. The reason being, the property registered amount of 20L and they only offer 50% of it as loan. Even though it was registered a few years back they only consider the register value. Moreover, a personal loan and mortgage loan can't be clubbed.

    No matter what permutation combination I did, I couldn't get a loan of 25L. Moreover, if a person is eligible for a personal loan and can pay an EMI of 35k should have same EMI for property loan as well. However, that is not the case.

    So when you are investing in such companies where those who are eligible don't get loans do mean those who aren't that well equipped can get and then NPA happens.