A step by step process for you to follow my new investment portfolio with an objective to building wealth.
2015 was a great year for my portfolio and though I had a very skewed portfolio inclined towards small cap (more often I have such skewed investments). It did more than what I could have ever imagined.
Though it feels really awesome for gains from market, I also feel lonely about such gains because it is not all about me making gains but more about my readers be able to do the same along with me.
I want my readers to be able to repeat what I manage but then I still did not want to be making stock recommendations or provide stock tips because stock tips never work.
This is when I decided to share my portfolio with my readers so they can understand what I have done and learn how I managed to do it and why I did what I did.
I realised that my portfolio is already doing good and so it may not be ideal for my readers to do what I have managed to invest earlier.
So I decided to build a fresh new portfolio for you and enable you to follow step by step.
Portfolio Objective
An investment without an objective is useless. Objective of this portfolio is to build wealth for me and allow my readers to follow along in the wealth building process.
I will be creating a fresh new investment portfolio where the focus will be to create wealth with a time horizon of each investment for at least 3 years.
I will be following my 10 rules of fundamental analysis to invest in stocks and share all the stocks that I analyse in a month using my rules of fundamental and technical analysis and share why I selected or rejected any stocks for my investment.
All my investment will be long term and my readers can follow even after my portfolio report updates on this blog.
The investment will be purely in equity but it will not only be in stocks but in stocks and mutual funds combined.
Fund allocation
I will be investing in tranches for many reasons.
- Don’t have immediate funds to invest – The first reason to be investing in tranches is because I don’t have the fund needed immediately that I can just deploy in market.
- Not very upbeat on the market from here – I am not very upbeat on the market with Sensex hovering around 26k. I see a correction in the market from here moving forward.
- I want my readers to be able to follow – If I just put in a heavy amount in one shot in market it will be really tough for my readers to follow along. If I plan to invest more in future, I can let my readers know in advance for them to follow along.
How much money I will allocate?
I am not very upbeat in the market as of now and so it will not be a huge investment for me going forward and so I have decided to invest 50,000 per month for the next 3 months.
If you want to follow along with me you can invest exactly the same amount but if you are short of funds, you can do in multiple of 5k like 10k, 20k, 25k or few times what I invest like 1L or 1.5L
Final Thoughts
The focus is not on where I invest but why I invested or rejected a stock and how you can also do the same.
Let us build wealth together.
Dear Friend Shabbir,
Your investment thoughts are excellent.From your blog I am learning so many new things about disciplined investments.Especially how to understand fundamental and technical
things about the company.
Really hats-of to you.
And also can you look into small and Mid cap as well I can wait long term 5 to 7 years.
Regards,
Ramana
9902900338
Ramana, I don’t like to tell what you should be investing in but I prefer telling why I have chosen any stock and logic behind it so that it can be applied to your selection of stock.
All my stocks are mainly small cap and midcap except L&T.
Thanks
Dear Shabbir,
Thanks for your initiative to teach & drive us with your knowledge & long term (self earned) experience. It would be great lesson & earning to all.
Regards,
KedarN
Sure it will be @kedarnadedkar:disqus
Wow .. quite excited to build a new portfolio in the new year .. looking forward for next post
Same here. I am also quite excited and market is providing the right opportunities as well.
Thanks sir.
Looking forward to your next letter.
Regards
Yaah I am intrested
Invest exactly the same amount, yes, but how does one get to buy at the
same price? Some of us might miss the bus by the time the mail arrives.
Any way to let us know a little ahead of time what you plan to do?
Hi Paul,
Good to see your comment and it has been long time. The idea is to provide the process I follow to building wealth and the price that I would buy will not make much of a different because it will remain to that price for quite sometime. This would not be a trading call but an investment call and I will not be buying everything in any one given month but in tranches in the same stock over a period of time.
Still if there is something that needs an immediate action, we can work out on such options as we need.
Very good. I am in
Cheers
Vijay
can you let us know your portfolio for 2015 and how it performed and your strategies followed
Yes I can always share that but then it will be more like boosting about my achievements.
All I can say is my portfolio worked really well because of my significant amount of investment in Hitech Plast which I have accumulated since I recommended in 2011.
Apart from that there were some stocks like Nestle and TTK Prestige ( Recommended ) which I sold off in 2015.
I am still holding Hitech Plast but then at current levels I don’t think it is good idea to be accumulating more.
I also hold a very small portion of Infosys but I will add that to the current portfolio that I will be building as there isn’t much gains from the level I purchased in December.
I hope that answers your queries and I hope you are as excited as I am to building the brand new portfolio.
Thanks for your reply and I hope this year will also be a great year for returns and waiting for your suggestions for building portfolio 🙂