Categories: Wealth Building

My Wealth Building Portfolio Report And Update – May 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 to remain fully transparent. I also share important lessons I learn along with the plans for the upcoming month.

Note: This is not my complete investment in market and I have other investment prior to January 2016. After January 2016 all my investments are shared here.

April has been a month where I could execute what I had planned. I intended to invest early and did manage it quite.

Infosys

Infosys has been a constant performer in the portfolio and I always prefer accumulating more each month.

I had plans to accumulate before the results and manage to add good position in Infosys on 1st April (contract notes here) itself and then on 7th April (contract notes here) when the market was in bad shape on those days.

Major IT players TCS, Wipro and HCL Tech all had disappointing results season and it is only Infosys that came up with better than expected results and also gave good guidance for the coming quarters.

It will always be a wise decision to accumulate more Infosys but then at a lower price. At 1200+ it is quite adequately priced. I would prefer to accumulate if I see a decline in Infosys on the back of correction in the market.

Tata Steel

Investment in tata steel in Feb at around 230 level has been the best performing investment in our portfolio.

People are really bearish about metal sector but then metal stocks are just roaring and this is what market is all about. I added more position to Tata Steel before the sale process of the Chorus getting started on 11th April and when the market was in really bad shape. Manage to enter into it at around 325ish levels (Contract notes here).

Larsen & Toubro

We started accumulating Larsen & Toubro in March and accumulate more as we move along and did exactly the same.

Added 10 more Larsen and Toubro (Contract notes here) but I wanted to buy fairly cheap but then did not manage it as I thought it will just run away.

Portfolio update

Performance of the portfolio we have built so far.

Stocks

Infosys: 72,486 (60)
- Invested: 69,929
- Profit: +2,557
Larsen & Toubro: 25,092 (20)
- Invested: 24,814
- Profit: +278
Tata Steel: 87,775 (250)
- Invested: 63,137
- Profit: +24,638
Zydus Wellness: 37,478 (50)
- Invested: 43,423
- Dividend: 325
- Loss: -5,620
Total Stocks: 2,22,830
- Invested: 2,01,302
- Dividend: 325
- Profit: +21,853

Mutual Funds

Birla SL Tax Plan-D: 1,02,261
- Invested: 1,05,000
- Dividend: 8581
- Profit +5,742

Overall

Portfolio: 3,25,091
- Invested: 3,06,302
- Dividend: 8,906
- Profit: +27,595

Lessons learned

Zydus Wellness

Zydus Wellness has been in my wait and watch list for a few months but will keep an eye on it to see if it goes back to 650ish levels again. May accumulate more once it cools off from 750ish again and takes support at around 650ish.

Tata Steel

I have been an aggressive buyer in Tata Steel but then at the current levels I will be in wait and watch mode. Will take a fresh call after analyzing the quarterly results.

Larsen & Toubro

At times, you tend to think that you may miss an opportunity and take the buying decision that you should not be taking. I believe it is a big learning lesson.The levels at which I invested is possibly a trading level where it should have been purchased with a target. I just cannot keep the trader in me quiet.

Plan Ahead

I will avoid buying Tata Steel above 350ish levels and will wait for the bad results or market correction to see if the stock cools off from the current levels where we can accumulate more.

Will accumulate Infosys and Larsen & Toubro, keep a keen eye on Zydus Wellness.

I have other good list of stocks where I want to invest in and am actively looking at Jubilant Foodworks though it looks very expensive even after correcting in couple of trading sessions from 1325+ level to 1150ish level.