Categories: Wealth Building

My Wealth Building Portfolio Report And Update – August 2016

A report I share each month of the progress to my wealth building portfolio of stocks and mutual fund position added with reasons and contract notes. I also share important lessons I learn along with the plans for the coming month.

Note: This is not my complete portfolio and I have other investment in more volatile and high beta stocks that should be an avoid for others.

I expected a correction in the month of July but it was a month of surprises for me. Liquidity can do wonders and this up swing in the market has been uni direction.

Market is rewarding good numbers as well as bad numbers but management is optimistic and is punishing bad numbers and management is pessimistic about growth.

Nothing has changed from Feb 2016 to Jul 2016 for Nifty to see the levels of 6800 and 8600. Click to Tweet

Stocks Commentary

Infosys

Booked very meagre profits in June in Infosys but it turned out to be the right decision and not because share price is down but growth outlook is weak. Don’t want to be investing in Indian IT companies where valuations are lingering around 20+ PE with weak growth outlook.

If they are available at cheaper valuations, will consider them again but as of now they are history for me.

Tata Steel

Booked good profits in Tata Steel in the month of June but the stock did move almost 25% from where I booked profits though I did not expect such an up move.

The switch from Tata Steel to Britannia also was the correct decision and no matter how the stock price of Tata Steel moves, it is a complete no for investments unless we have political stability in UK and clarity over the Tata’s UK plant.

Jubilant Foodworks

No more addition of Jubilant Foodworks at 1200+ levels. I expect subdued results of Jubilant Foodworks and if it corrects, I will add at around 1050ish levels but not very far from 1050 level as stock is already trading at a very high PE multiple.

Britannia Industries

Britannia Industries at around 2900 levels is not for accumulation and I prefer to wait for market correction and accumulate under 2700. Can change 2700 to slightly higher after analyzing the quarterly results on 8th August.

Zydus Wellness

Added 25 more of Zydus Wellness in July (Contract notes here) and it is the only stock in our portfolio that is available at prices I am comfortable accumulating. Can accumulate further in August if I don’t find better opportunity in Britannia Industries after the results.

Portfolio Update

Increased our portfolio investment from ₹4,41,146 to ₹4,61,150 An increase of ₹20,004 in the month of July. Let us now see the performance of the portfolio we have built so far.

Profits Realized

  • Infosys: 780 (60)
    • Average Buy: 1165
    • Average Sold: 1178
  • Tata Steel: 9,200 (400)
    • Average Buy: 280
    • Average Sold: 303

Total Profit Realized: 9,980

Dividends

  • Zydus Wellness: 325
  • Birla SL Tax Plan: 8,581

Total Dividend Received: 8,906

Stocks

  • Britannia Inds 1,32,021 (45)
    • Invested: 1,18,731
    • Profit: +13,290
  • Jubilant FoodWorks 1,22,390 (100)
    • Invested: 1,09,503
    • Profit: +12,887
  • Larsen & Toubro 31,177 (20)
    • Invested: 24,814
    • Profit: +6,363
  • Zydus Wellness 1,18,852 (150)
    • Invested: 1,21,989
    • Loss: -2,811
  • Total: 4,04,440
    • Invested: 3,75,036
    • Profit: +29,729

Mutual Fund

  • Birla SL Tax Plan-D 1,11,981
    • Invested: 1,05,000
    • Profit+Dividen: +15,462

Overall

  • Portfolio: 5,16,421
    • Capital Invested: 4,61,150
    • Unrealized Profit: 36,385
    • Realized Profit: 9,980
    • Dividend: 8,906

Plans for August and Beyond

In July portfolio crossed a major milestone 5 lakhs and in August I hope the total invested capital will cross the 5 lakh as well.

The return in the portfolio has been very good so far but such good returns cannot keep on and on. I expect correction in August but have no plans to book profits but will reduce the aggressiveness in investing going forward.

From January to June, instead of investing 50k per month the average has been almost 65k mainly because of better investing opportunity but I will slow down considerably in the second half of the year and will try to keep money in the sidelines to take advantage of corrections in the broader market.

Apart from being in the sideline, will start investing in tax saving mutual funds but those are plans after August as of now.

Over to you

As always I’d love to respond to any questions or comments that you may have. Thanks!

Shabbir Bhimani

A trader, investor, consultant and blogger. I mentor Indian retail investors to invest in the right stock at the right price and for the right time.

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