Follow My Portfolio with Latest Buy/Sell Transactions Updates

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My portfolio has generated a return of 23.3% against the Sensex return of 12.1%. We identified companies, which were later invested by Sanjay Bakshi, Mohnish Pabrai, PE funds and mutual funds.

Subscribers will get access to “My Portfolio” page, which has details of stocks in my portfolio and the list of transactions since July 30, 2016. Subscribers will also receive email notifications for future transactions in my portfolio.

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Description

I started building my current portfolio in 2011 when I joined my first job after my MBA. I invested in fundamentally good stocks like Vinati Organics Ltd and Mayur Uniquoters Ltd at the initial stage of their growth phase when they were available at low prices. Thereafter, many well-known and large investors invested in these companies and their share prices increased significantly. The PE ratio of Vinati Organics increased from 7.7 to above 40 and the PE ratio of Mayur Uniquoters increased from 6.6 to above 30. This increase in valuations of these stocks generated significant gains for my portfolio.

 

Customers’ Feedback about Follow My Portfolio service:

 

 

Hi, Dr Vijay (Dr Stock),

Happy Morning!

For the last 2.1/2 yrs, I am using your (follow my portfolio) services. It has helped me to gain knowledge and portfolio returns. I want to highlight a few unique things, which I liked very much in your Portfolio services.

  • You don’t care whether the market is up or down. You simply buy a stock every week, which is quoting at fair value or below the fair value.
  • You run a very concentrated portfolio of (x) stocks (diversified fields).
  • All your companies (stocks) enjoy a mini monopoly in their industries.

I always feel lucky to be a follower of you. Thanks!

– Kiran

Hi Sir,

I have been following you for over 3 years now out of which I have been following your portfolio for almost 2 years. I am glad to have found you on the internet as I really liked your investing approach. The best part of following you was to learn how to remain calm and invest in turbulent times. As I never noted you chasing hot/popular stocks, new IPOs and showing “fear of missing out” (FOMO) behaviour. Neither noted you panicking and selling your holdings. This is how a long term investor should behave and I have learnt the behavioural aspects from you to a large extent. So, I am a satisfied and happy follower for sure.

– Ranjan

 

Performance Update on June 3, 2021

On June 3, 2021, the portfolio has generated a lifetime annualised return (XIRR) of 23.3% from August 8, 2011, against an annualised increase of 12.1% in BSE Sensex during the same period.

Since the start of this service in 2016, we had done a total of 254 transactions in the portfolio, out of which 252 are “Buy” transactions and 2 are “Sell” transactions.

The portfolio consists of 36% mid-cap and 64% small-cap stocks as per AMFI classification (Dec. 2020).

The below table contains the detailed performance history of the portfolio. Returns and portfolio size are audited up to March 31, 2021.

 

Key Features of Follow My Portfolio service

Subscribers will get the following benefits:

  1. Access to My Portfolio page containing details of my portfolio and all the buy/sell transactions from the start of this service (July 30, 2016) until date.
  2. Update by email about all the future transactions in my portfolio at the end of the day of the transaction (after the market closing hours) during the period of the subscription.

Key points of this service:

  1. It is an information service and not an advisory or research service. In it we intimate subscribers about our portfolio allocation and transactions. We do not provide any portfolio advisory, portfolio allocation and creation, stock selection, stock buying targets, selling targets, financial planning etc. as a part of “Follow My Portfolio” Service.
  2. We do not discuss portfolio stocks or provide any research report on them.
  3. Please note that we disclose stock positions of my family (my wife and I) on My Portfolio page. Other family assets like real estate, gold, ELSS mutual funds, fixed deposits, cash etc. are not disclosed.
  4. Important Disclosure: My wife, a corporate employee, is eligible for shares of her employer-company under their Employee Stock Options Plan (ESOPs), Employee Stock Purchase Programs etc. Our holding and transactions in the employer-company’s shares are covered under the insider trading guidelines of stock market regulators (e.g. SEBI) as well as the employer. Due to these restrictions applicable under the above-mentioned insider trading and other policies, we find ourselves unable to do the dissemination of our holding and transactions in the employer-company’s shares. Therefore, we would continue to disclose our equity portfolio composition, transactions and portfolio performance updates, consisting of my & my wife’s portfolio excluding the position in the employer-company’s shares. At any point of time, subscribers should note that we may have positions in the employer-company’s shares.

 

Format of information on My Portfolio page

My Portfolio page has the details of stocks in our current portfolio in the following format:

It has the details of all the buy/sell transactions since the start of this service (July 30, 2016) till date in the following format:

Whenever I will do any transaction in my portfolio, the subscribers will get an email at the end of the day (after the market closing hours), which will contain the information in the following format:

Date | Name of the Company | Buy/Sell | Price (₹)

 

Instructions to subscribers:

  1. Please add our email ID: vijay.malik@drvijaymalik.com in your email contacts and whitelist it so that our emails are not filtered by Gmail/other email providers as promotions/social/spam. Please follow the steps mentioned on this link: How to whitelist email address in Gmail, Yahoo Mail and Outlook
  2. Follow My Portfolio is a subscription service. The access to premium features of this service will expire after the subscription period gets over unless a renewal is done.
  3. Please note that once this premium service is availed, then there is no provision of any refund of the fee or the cancellation of the service during the period of subscription.

 

Frequently Asked Questions (FAQs)

Q. How many stocks do you have in your portfolio?

On May 7, 2021, I had 7 stocks in my portfolio with the longest-held stock from 9.5 years. The latest information about the number of stocks in the current portfolio is available only to subscribers.

I prefer to invest money in the existing stocks in my portfolio until all of them have appreciated more than my preferred buying valuation range. An investor will appreciate that the stock prices move a lot. For most of the stocks, 52 weeks high is almost double of it 52 weeks low. Therefore, buying opportunities keep appearing in the existing portfolio stocks.

 

Q: How many buy/sell transactions do you do in your portfolio in a year?

The buy transactions are usually once every week. Sell transactions are relatively few. Maybe one sale once in a year.

 

Q: How often do you buy new stocks in the portfolio or sell existing stocks?

Buying new stocks: My experience shows that usually, I add one new stock to my portfolio in a year. This is the pattern for the last many years. It may or may not stay the same in the future.

I prefer to exhaust the buying opportunities in existing stocks before I add any new stock to the portfolio. Therefore, most of the investments during any year go into existing stocks that are in my buying range. Only when none of the portfolio stocks is in the buying range or only when any very exciting opportunity is available outside the portfolio, then I add new stock in the portfolio. If this is not the case, then I might not choose to add any new stock to the portfolio.

Therefore, in future, I might add more than one new stock in the next year or might not add any new stocks. It will depend on how the valuation levels are.

Selling existing stocks: In the past, usually, I had to sell one company from my portfolio in a year. In the future, it may not stay the same. If stocks keep performing well, then I may not sell any stock for many years. On the contrary, if the fundamentals of more than one stock deteriorate, then I may sell more than one stock in a year.

 

Q: When you buy additional stocks of any company, which is already a part of your portfolio, then the current market price of the stock can be different from your average cost price.

  1. If the current market price of the stock is higher than your average cost price, then what do you think before buying additional stocks? Do you buy it because, you think that despite buying at a higher price, your average cost price will still be lower than the current market price? Or you buy it because you think that the stock is a good buy at the current market price?
  2. If the current market price of the stock is lower than your average cost price, then what is your thought process before making the buy decision? Do you buy additional stocks only to bring your average cost down without looking at fundamentals? Or you buy additional stocks because you believe that the company’s fundamentals are intact and it is becoming attractive to buy more stocks at the current market price?

While buying additional stocks of any company, which is already a part of our portfolio, we look at the current market price and see whether the company is an attractive investment opportunity at the current price. We do not give any thought to our average cost price while making additional purchases.

If the current stock price is higher than our average cost price; however, the valuation of the company is still attractive, then we would buy its stocks. If the current price is lower than our average cost price (i.e. our investment is in a loss), but we believe that the fundamentals of the company are intact and it is an attractive buy in the current situation, then we buy additional stocks of the company at lower prices.

In any situation, our focus is on the fundamentals of the company and its valuations at the current market price. We do not give any thought to our average cost price in our investment decisions.

 

Q. A sell decision of a stock may be due to either the deteriorating fundamental position of the company or due to the personal financial needs of the investor. How would subscribers come to know whether the sell decision is due to personal reasons or related to deteriorating fundamentals of the company?

Usually, whenever the fundamentals of any company deteriorate, then the entire stock position is sold off whereas if an investor needs to take out some money from the portfolio for personal needs, then only the partial position which suffices the monetary requirement is liquidated.

However, I will intimate the subscribers whenever the sale is because of personal reasons, which are not related to the fundamentals of the underlying company.

 

Q. How much return do you expect to make from your portfolio/stock next year/in future? What is the target price that you have in mind for any stock in your portfolio?

We do not keep any return expectations. This is due to the following reasons:

  1. stocks have the habit of not responding even to good business performance for years altogether and
  2. when good stocks rise on recognition by the markets, then there is no limit to what extent they may rise.

So, we choose to invest in stocks, which we feel are fundamentally good and stay with them without any return expectations.

 

Q. Why you do not discuss portfolio stocks or provide any research report on them as a part of this service?

The condition of no research report/investment note has been put after considerable thought. This service has been deliberately kept only like a window giving a glimpse of my portfolio transactions.

An investor would appreciate that the major difference between an institutional investor/portfolio manager and an individual investor is that the individual investor is not answerable to anyone but herself for her trades. On the other hand, a portfolio manager is questioned every quarter about the turnout of her investment thesis and her performance. Such continuous scrutiny brings out defensive behaviour, which in turn leads to defensive investments. It is said that if you lose money in IBM (Reliance in the Indian context), then you are not questioned, IBM is questioned.

An individual investor who manages her personal portfolio can ignore all the pressures & scrutiny and she can act solely based on her conviction. To give an example from my own experience, I initially bought Manappuram Finance Ltd at ₹52 and when its price started falling, I bought more all the way down till ₹10. It’s the result of staying true to my own conviction that I was able to control my emotions and got the benefits when it moved up beyond ₹150. Had I been answerable to people by announcing a fixed hypothesis of holding a position, then it would have brought in defensiveness and I do not know whether I would have been able to manage my portfolio the way I did.

An investor following fundamental analysis knows that in financial analysis of any company, she is doing the same thing that all other well-informed investors are doing. This is because the same financial data and ratios are available to everyone. In such a situation, what investors think beyond financial numbers, is something that differentiates them. This factor of “something beyond numbers” makes investing an art and not science.

The art aspect of investing constitutes multiple things like emotional stability, gut feel and many times a plain hunch. These subjective factors are very difficult to quantify in terms of a fixed hypothesis for holding stocks. These factors can not be tracked regularly. But these are the factors, which finally matter in equity investing.

Many times, without meeting the management of a company, we have our reasons to trust that they are good and shareholder-friendly people. Some of these reasons are objective but many are subjective & diffuse. I believe that until the time I do not put out these diffuse reasons in front of everyone for judgment, I am able to act true to my conviction and bring originality in my equity investing approach. The moment I start getting the feeling that I am being judged on my reasons, then the originality would go away.

I want the subscribers to get access to my original equity investing decisions. The investors may or may not act on updates of my portfolio transactions. That is always an investor’s choice.

Therefore, to maintain the true freedom of action without getting influenced by the deep-seated human desire of being proven right every time one says something, I have decided not to give any reasons for my portfolio actions. Therefore, if some investors feel that this service seems incomplete, then I accept this feedback. However, I would reiterate that this service has been designed in this way deliberately and after due thought process.

 

Q. How do you avoid conflict of interest in this service?

If I decide to reverse my position of a buy or a sell in any stock of my portfolio, from the position taken by me within the previous 15 days, then before entering into such reverse position, I would send an email notification to all the subscribers at least 24 hours before I enter into such transaction in my portfolio.

All the best for your investing journey!

Regards,

Dr Vijay Malik

P.S. Please note that the information received through this premium service is for the sole use of the subscriber and is not to be shared with anyone else.

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Follow My Portfolio with Latest Buy/Sell Transactions Updates
15,000.0024,000.00 All Inc.