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Category: Stock Market

  • Three years as shareholder of Havells

    Three years as shareholder of Havells

    Three years ago I started investing in Havells. During the first two years the gains were pretty average. But during last one year the stock has zoomed and so has my returns.

    Return

    I invested only four times in Havells and was planning to invest more, but at the current price I maybe overpaying.

    Profit

    At the current price levels, my amount invested in Havells has more than doubled. While the amount invested wasn’t significant but the profit percent surely is.

    XIRR

    The current XIRR of 45%—which is certainly impressive—is not sustainable in the long run. But with the good run that this stock is having I am hoping for fat returns of 20% over long term.

    NOTE: XIRR for initial months varies wildly and is not useful for any analysis. But once the investments complete minimum of 1 year, XIRR gives me a much better picture. So I calculate ‘XIRR (>1 year)’ which calculates XIRR only for the investments which have completed minimum of one year while ‘XIRR’ continues to calculate for all the investments irrespective of how much time has been completed. There are some periods where ‘XIRR’ and ‘XIRR (>1 year)’ calculate to the same amount as for that time all my investments had completed minimum of 1 year.

  • Five years as shareholder of Asian Paints

    Five years as shareholder of Asian Paints

    Five years ago I started my investment journey in Asian Paints. And then I stopped after four months! For the next three years I did not invest in Asian Paints as I was trying to ‘diversify’. At least that’s what I think I was doing. Looking back at those three years and current share price of Asian Paints, it seems like a lost opportunity. And that too a big one. Along with HDFC Bank and Pidilite Industries, Asian Paints has high allocation in my portfolio and I invested heavily in it during COVID pandemic market crash.

    Return

    Profit

    XIRR

    Asian Paints has consistently maintained a positive XIRR, even during the COVID pandemic market crash. And because of market rally after that, my XIRR currently stands at more than 30%. Keeping my fingers crossed that this trend continues.

    NOTE: XIRR for initial months varies wildly and is not useful for any analysis. But once the investments complete minimum of 1 year, XIRR gives me a much better picture. So I calculate ‘XIRR (>1 year)’ which calculates XIRR only for the investments which have completed minimum of one year while ‘XIRR’ continues to calculate for all the investments irrespective of how much time has been completed. There are some periods where ‘XIRR’ and ‘XIRR (>1 year)’ calculate to the same amount as for that time all my investments had completed minimum of 1 year.

  • Four years as shareholder of VIP Industries

    Four years as shareholder of VIP Industries

    Four years ago after my thorough research I decided to invest in VIP Industries (and I can’t remember what that research was). I invested twice in 2017 when the share price was just below ₹ 200. After that the share price climbed sharply resulting in more than 200% return in next one year. I patted myself on the back for my (non-existant) stock picking skills. Then came COVID. The COVID pandemic crash wiped off everything in one month. One month! I invested twice during the crash to accumulate more shares at lower prices. The returns have since recovered but it is nowhere near the 200% mark that I once saw.

    Return

    Profit

    The COVID pandemic crash was probably the most severe for VIP Industries in my portfolio. From 170% profit to 20% loss in one month. And it made sense considering the travel ban imposed because of COVID. It has recovered but I am yet to see the astronomical heights that I saw in Sep 2018.

    XIRR

    NOTE: XIRR for initial months varies wildly and is not useful for any analysis. But once the investments complete minimum of 1 year, XIRR gives me a much better picture. So I calculate ‘XIRR (>1 year)’ which calculates XIRR only for the investments which have completed minimum of one year while ‘XIRR’ continues to calculate for all the investments irrespective of how much time has been completed. There are some periods where ‘XIRR’ and ‘XIRR (>1 year)’ calculate to the same amount as for that time all my investments had completed minimum of 1 year.

  • Four years as shareholder of Pidilite Industries

    Four years as shareholder of Pidilite Industries

    Four years ago after my thorough research I decided to invest in Pidilite Industries (the company made Fevicol and that was the only research I did).

    Return

    Pidilite Industries has been probably one of my most consistent performers. Even during the COVID pandemic crash, the worth of my investment never went below my amount invested.

    Profit

    Except during the early months of my investment I am yet to see a loss with my investment in Pidilite Industries.

    XIRR

    My ‘XIRR (>1 year)’ has been so good with Pidilite Industries, that even at the worst point it was giving better returns than fixed deposits.

    NOTE: XIRR for initial months varies wildly and is not useful for any analysis. But once the investments complete minimum of 1 year, XIRR gives me a much better picture. So I calculate ‘XIRR (>1 year)’ which calculates XIRR only for the investments which have completed minimum of one year while ‘XIRR’ continues to calculate for all the investments irrespective of how much time has been completed. There are some periods where ‘XIRR’ and ‘XIRR (>1 year)’ calculate to the same amount as for that time all my investments had completed minimum of 1 year.

  • Six years as shareholder of HDFC Bank

    Six years as shareholder of HDFC Bank

    Six years ago after my thorough research I decided to invest in HDFC Bank (my ICICI Bank relationship manager advised me to invest in HDFC Bank and not in ICICI Bank, and I am glad he did).

    Incidentally, HDFC Bank was the start of my investing journey. It was the first share that I bought. Being a rookie back then, at one point I bought just one share to round off the number of shares with me. After the contract statement came I realised that I had paid a hefty brokerage charge on that.

    Return

    Between Feb 2018 and Feb 2020 I did not invest in HDFC Bank. Why? Because I was busy investing (ahem, diversifying) in Greenply, IDFC First Bank and Supreme Industries. That was a lost opportunity in hindsight.

    Profit/Loss

    XIRR

    HDFC Bank is one of the stars of my portfolio, consistently maintaining XIRR of more than 20% except during the COVID pandemic crash where my five years worth of gain were wiped off in matter of weeks. It has since recovered though.

    I invested steadily in HDFC Bank during the COVID pandemic market crash as I wasn’t sure if other companies will survive the post COVID pandemic era. And I am hoping HDFC Bank will.

    NOTE: XIRR for initial months varies wildly and is not useful for any analysis. But once the investments complete minimum of 1 year, XIRR gives me a much better picture. So I calculate ‘XIRR (>1 year)’ which calculates XIRR only for the investments which have completed minimum of one year while ‘XIRR’ continues to calculate for all the investments irrespective of how much time has been completed. There are some periods where ‘XIRR’ and ‘XIRR (>1 year)’ calculate to the same amount as for that time all my investments had completed minimum of 1 year.

  • Four years as shareholder of Marico

    Four years as shareholder of Marico

    Four years ago after my thorough research I decided to invest in Marico (I realised embarrassingly late that Marico manufactures Parachute which I have been using for decades). This is how it has performed for me.

    Return

    The first year of my investment’s worth was flat with no gains; the second time I bought Marico after one year, it was at the same levels as the first time. But the next three years the share price has been steadily improving (except the COVID pandemic crash).

    Profit

    XIRR

    Post COVID pandemic crash, the share price has recovered and is at 15% XIRR. I am hoping it continues with that rate for coming years and provide me with inflation beating returns.

    NOTE: XIRR for initial months varies wildly and is not useful for any analysis. But once the investments complete minimum of 1 year, XIRR gives me a much better picture. So I calculate ‘XIRR (>1 year)’ which calculates XIRR only for the investments which have completed minimum of one year while ‘XIRR’ continues to calculate for all the investments irrespective of how much time has been completed. There are some periods where ‘XIRR’ and ‘XIRR (>1 year)’ calculate to the same amount as for that time all my investments had completed minimum of 1 year.

  • Three years as shareholder of Nerolac

    Three years as shareholder of Nerolac

    Three years ago after my thorough research I decided to invest in Nerolac. My research was so thorough that it was only on trying to buy the share I realised it is not Nerolac, its Kansai Nerolac. I have invested only thrice over these three years. Below is how the returns have been for me.

    Return

    Profit

    XIRR

    NOTE: XIRR for initial months varies wildly and is not useful for any analysis. But once the investments complete minimum of 1 year, XIRR gives me a much better picture. So I calculate ‘XIRR (>1 year)’ which calculates XIRR only for the investments which have completed minimum of one year while ‘XIRR’ continues to calculate for all the investments irrespective of how much time has been completed. There are some periods where ‘XIRR’ and ‘XIRR (>1 year)’ calculate to the same amount as for that time all my investments had completed minimum of 1 year.

  • When to sell stocks?

    Probably the most practical set of examples on when to sell stocks from your portfolio by R Venkataraman writing for Economic Times.

    I have many stocks, which I am holding for years. I don’t look to optimise every stock, and I don’t think it is worth the time and effort. I am not a professional fund manager, and retail investors should ideally not waste time trying to optimise a portfolio. There will be duds and some stars and vice versa. The key is to emerge fine on an overall portfolio basis.

    I have sold shares when I need money to do something in the real world, which in my case, was real estate. If you don’t need to break the portfolio, please don’t.

    I have sold shares when I needed to sell X to buy Y. At that time, I evaluated all stocks, and picked the ones to sell, which in my opinion, would not do as well as the new entrant. I am not an active churner; this exercise happens rarely.

    I have sold shares when stocks were giving returns beyond my imagination, which happened this year. This is a new feeling for me because most stocks in my portfolio usually move slowly. This year, some of my stocks have risen vertically. So I have booked profits. I use a mental model, which is not very scientific. So don’t waste time trying to poke holes in it.

    Develop your own rule of thumb that makes you happy. I tell myself, sell 50% of the stocks, so that remaining stocks are free. This I learnt from my friend HM, who used an acronym SHAD – sell half at double – and let the rest run.

    Selling stocks? To do it or not to do is indeed a big question

  • Four years as shareholder of Motherson Sumi System Limited

    Four years as shareholder of Motherson Sumi System Limited

    Four years ago I didn’t know what Motherson Sumi System Limited was and what it did. The only reason I invested in it was that 100+ other mutual funds had invested in it. If so many mutual funds have invested in it, then the company must be good. That was the only research I did. 

    After learning about some thing called as “dollar cost averaging”, I invested more amount when the price fell. After the price fell even more I stopped investing as I learned something called as “don’t try to catch a falling knife”. 

    It has been a roller coaster ride on this one. In the crash of Mar-Jun 2020 the worth of my investment was just 30%. And in the subsequent months it recovered and returned to positive value after almost 3 years. 

    Return

    Profit

    XIRR

    NOTE: XIRR for initial months varies wildly and is not useful for any analysis. But once the investments complete minimum of 1 year, XIRR gives me a much better picture. So I calculate ‘XIRR (>1 year)’ which calculates XIRR only for the investments which have completed minimum of one year while ‘XIRR’ continues to calculate for all the investments irrespective of how much time has been completed. There are some periods where ‘XIRR’ and ‘XIRR (>1 year)’ calculate to the same amount as for that time all my investments had completed more minimum of 1 year.

  • 3 years as shareholder of Supreme Industries

    3 years as shareholder of Supreme Industries

    3 years ago I invested in Supreme Industries after my thorough research (I bought a plastic chair made by Supreme Industries and I liked it). After that I invested just two more times in the stock. Below is how the stock has performed for me over these 3 years.

    Return

    For first two years, the returns were pretty average. It was only during the uptick post Jun 2020, the stock has risen sharply and delivered good returns.

    Profit

    XIRR

    XIRR for initial months varies wildly and is not useful for any analysis. But once the investments complete minimum of 1 year, XIRR gives me a much better picture. So I calculate ‘XIRR (>1 year)’ which calculates XIRR only for the investments which have completed minimum of one year while ‘XIRR’ continues to calculate for all the investments irrespective of how much time has been completed. There are some periods where ‘XIRR’ and ‘XIRR (>1 year)’ calculate to the same amount as for that time all my investments had completed more minimum of 1 year.