So far the last year has been great. Both in terms of opportunities and volatility, the market has given even a value investor like me strong returns which must usually be expected only for long term.
I don't want this short term success to make me overconfident and susceptible to greedy mistakes.
My portfolio has a healthy mix of a few sectors. Some of my picks have been extremely strong on fundamentals, bought at very attractive valuations and some have been a little more adventurous :)
I want my decisions to be even more rewarding and well structured this year. I tend to invest in too many opportunities and then it becomes a task for me to handle my portfolio.
Guidelines for this year-
1. Pick green fundamentally strong companies.
2. Buy below Discount Price only.
3. Reducing the no. of companies being held.
4. Make sure to sell when target is achieved.
5. Invest the most in stocks farthest from MRP. If a certain stock is close to its target it can be sold and reinvested in a stock which has greater returns to offer.
I think these new guidelines should help me stay disciplined and follow value investing to get the best results.
I don't want this short term success to make me overconfident and susceptible to greedy mistakes.
My portfolio has a healthy mix of a few sectors. Some of my picks have been extremely strong on fundamentals, bought at very attractive valuations and some have been a little more adventurous :)
I want my decisions to be even more rewarding and well structured this year. I tend to invest in too many opportunities and then it becomes a task for me to handle my portfolio.
Guidelines for this year-
1. Pick green fundamentally strong companies.
2. Buy below Discount Price only.
3. Reducing the no. of companies being held.
4. Make sure to sell when target is achieved.
5. Invest the most in stocks farthest from MRP. If a certain stock is close to its target it can be sold and reinvested in a stock which has greater returns to offer.
I think these new guidelines should help me stay disciplined and follow value investing to get the best results.
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4 comments:
Hi Sumi,
Nice to see your strategy for 2010.
Wish you best luck. Focused portfolio is always good choice.
If you could post your picks on your blog, like Rohit Chauhan does, it would be great.
Kind regards
Aniruddha
Hi Sumi,
Nice to see your strategy for 2010.
Wish you best luck. Focused portfolio is always good choice.
If you could post your picks on your blog, like Rohit Chauhan does, it would be great.
Kind regards
Aniruddha
Hi Sumayya,
I'm happy to see that you have a good and focused strategy for 2010. Picking a few and fundamentally strong companies at an attractive price is the key to success in the Value Investing World...
Consolidate your portfolio and continue to make great returns... Wish you all the best!
Warm regards,
Charu
Hi Aniruddha,
I cannot really post my picks as I don't recommend stocks. I believe investors should do their own analysis and then decide.
However I post companies I find attractive for various reasons from time to time. I will be posting one very soon.
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