Many people have asked me – do you trade? and the answer has always been – ‘kind of’.
I am convinced that you can build a kind of permanent portfolio – but you need to be thick skinned, and deaf to all the noise around you. I have been told by many well wishers that Hero Honda is fully priced, Colgate will now not perform in the future, Hdfc does not now have the pricing power of the old, …blah blah blah ad nauseum.
However it did not matter to me.
In fact there are some people who bought some of the shares I recommended but sold off as they were itching for action. My portfolio is dull and boring, but happily beats the index – and that is because of poor index construction, not my superior managing skills. Also my portfolio may not be as well balanced as some fund schemes – but neither do I report to trustees. I was SELLING Ashok Leyland @ 62-63 – when a media company was urging people to buy. Sugar prices are down, but sugar company share prices are high – to me this is enough FOR me to sell. Mahindra Holiday Resorts at 544 looked overpriced and at 440 will look attractive to buy…
And since there are no trustees for whom I have to prepare 40 page notes on why and what, I guess life becomes a little easier. You can use your gut feel to do further research.
And ah! from 18k…till today I am sitting on about 25% cash+ the dividends will start coming in from June-July….so at 14k…can put it to use.
Am I saying the market will come to 14k, NO. I am just saying that buying, selling, fully selling out, moving from the auto industry to the auto ancillary industry,….are all NOT CONTRADICTORY at all. And one can do all this while keeping your portfolio PERMANENT.
Here is somebody with a similar thought process
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