Stocks for the long and short term portfolio

[jamit_05]

i have blown up my account of 2-3 lacs...................2 times ,upto 80%

3rd time upto 50%.

before FSL i was not a long term or medium term investor, i was trading nifty future for 4+ years intraday , as i feared carrying position a lot .

so since i started buying in delivery ..........i bought FSL @12.50 , luckily it went only till 11 rs i think

reliance bought @870 ...........i saw it dipped to 790 and then it bounced back as you know to this level .

tv18 i bought @22.80 and i saw low of 19.80 i think...........all these are medium or long term bets

and i had bought jp associate @40 i think and i sold it at losss of 4-5 k............even to this day i donno why i sold that

i trade upto 8 lots of nifty future now a days and my dream target is trading 20 lots

That is a very realistic and an honest answer. Trading requires alertness and grit and determination alongwith constant vigilance. This is a lot to ask for, hence one gets defensive and puts only a percentage of his capital into it.

However, investment is not such. If done the right way, after first couple of years of getting into a portfolio, there is almost never a drawdown and hence one can be completely invested.

It is a trade-off between

1) earning 20% annually on your complete capital in Investments.
2) earning 60% annually on 25% of ones capital. With a lot of hardwork.

 

[aryan.]

i have blown up my account of 2-3 lacs...................2 times ,upto 80%

3rd time upto 50%.

If you would have put your money in Nifty Bees, you would have made a positive return without doing anything.

 

[jamit_05]

If you would have put your money in Nifty Bees, you would have made a positive return without doing anything.

Index investing is the probably the next best thing to Investing in stocks. It would also beat putting ones money into FDs... but it still attracts 30% Income Tax, just like speculative income.

 

[jamit_05]

what?..........no

nifty Bees is just like stocks in delivery , no taxes after 1 years holding period

Isn't it an ETF managed by GoldmanSachs with 1.5% (or so) annual charges? If it is falls under tax-free capital gains section, then even better.

 

[Govind99]

@ Tool Cool

Completely Agreed

 

[aryan.]

Isn't it an ETF managed by GoldmanSachs with 1.5% (or so) annual charges? If it is falls under tax-free capital gains section, then even better.

Yes its managed by Goldman.

Annual charges are not 1.5%, Its around .5%.

http://www.benchmarkfunds.com/gs/Documents/Factsheet.pdf

 

[blisscapital]

Yes its managed by Goldman.

Annual charges are not 1.5%, Its around .5%.

http://www.benchmarkfunds.com/gs/Documents/Factsheet.pdf

ETFs are least cost products as they dont need active management, if u keep investing at lows and keep booking out at highs u can slowly build some wealth..

 

[vssoma]

dear,
i am planning to invest in IFCI, as SIP, means, i'll invest some perticular amount every week/2weeks.
can u pls tell me it is good stock to invest for 2-3 years( weekly SIP) if not pls suggest a good stock within 25-50RS.
thank you.

dear jamit,
i think u missed this post to reply...pls. i am expecting from u.

 

[jamit_05]

dear jamit,
i think u missed this post to reply...pls. i am expecting from u.

Hello,

I would ask you to rethink your choice of stock, IFCI.

If you are employing such good discipline of SIP, then you must also employ a good strategy which allows you to invest in different sectors.

Do not restrict yourself to Rs.50, but restrict yourself to GOOD STOCKS.

You will find them in this thread, in my posts. Make a list and start.

Finally, avoid SIP in such times when prices are hiked. Wait for a moderate correction after the elections.

 

[jamit_05]

Motherson Sumi.

From an investors perspective, it is still a gamble. It has some serious Cons on its Annual report.

1. Its management believes in diluting equity to raise capital. They diluted equity by recently 65% (that means a 65% drop in EPS)

Investors don't like this for two reasons
a. it cuts down EPS somewhat sharply.
b. it allows the company to raise more debt without damaging the structure of the balance sheet. For one, the debt equity ratio remains low inspite of raising debt as equity also increased.

2. Its NPM is very slim: 1.8%. When coupled with high debt to service, this becomes a little dangerous.

3. It is a capital intensive business as it requires a lot of investment in machinery. It has invested an upward of 3500 Crore in the last three years.

The company is growing its sales very fast, but that also requires it to grow debt very fast. With this format, this company will always be debt laden and cannot see organic growth as its NPM is very slim.

I would not recommend a purchase on this stock. Especially now, as it is at its all time high. Let the tide flow back and see how low this stock goes before making purchase.