Typically, the advise given is ‘do not be sentimental about your investments’.

People also ask me ‘Tell me some shares like shares in your portfolio – like Gillette, Colgate, Hero Honda, LnT, Tata Power, EiD parry,….et al which I can also buy and forget for a long period of time.

Hey investing is NOT about forgetting for a long period of time. Let me give you 2 recent examples.
I have/ had Hero Honda (Hero Motors) and EiD Parry in my portfolio, and both these shares are of the vintage of the 1980s. This means they have been held for about 25 years+. More like 30.

Does it mean I have never traded in them? For heavens sake, NO. I had 500 shares of Hero Honda – of this a little was bought at 10 in an IPO and some at about 40 Rupees. Then I used to see the working of HH regularly – and liked it. I also knew that in a booming economy HH, Bajaj Auto, Suzuki…will all do well. HH at no stage gave me a fright of being poorly managed, or a company that would not treat its shareholder well. I must hasten to add that when there are 2 big promoters, the shareholder gets treated well.

So over the years thanks to splits, bonus, and some trading, my HH portfolio reached a high of about 8k shares. That I think was the peak of my HH holding. Then I also sold very heavily..and yesterday was the last lot of  410 shares sold off. That is it. I have no more shares of Hero Motors….the Honda having dropped out.

IN case of EID Parry, I have traded many many more times than HH. I have sold when the sugar prices are high, bought back when s prices are low. My purchase price – in the late teens, I think in 1986, not very sure. I have also bought at much higher prices – covering a sale. My RoI on this investment must have been incredibly high because of the trading and of course the awesome dividends too. As late as 15 days ago I sold at 204 and 196….

Today I bought it back at 178….and I also know that in the shares that I hold I am also getting Rs. 6 as dividend..which is a decent yield return.

Again in case of Eid parry the no. of shares is in 5 digits, and the buying and selling has dramatically improved the ROI, and of course the dividend payouts have been generous.

So were these ‘Long Term Hold buys?’ yes. Have I traded in them  ‘YES’. Have I collected dividends? Is it a share that was in my portfolio for 3 decades? Yes.

Is it a trading stock or an Investment share? Have I got you confused? welcome to subramoney.com

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  1. Now this is unexpected!
    I am curious to know, what you did in late 2007(or start 2008), when almost all stocks were overvalued?

    -Vinit

  2. i sold Tata Power, LnT, Kotak Bank, Cholamandalam Finance – reasonable quantities…Rest of the portfolio remained untouched…bought back Kotak and Cholamandalam, at much lower prices. Did not buy Tata Power and LnT – I still hold those shares and had only sold partially.

  3. Subra Sir,
    How did you know that it was the time to sell these stocks ( Tata Power, LnT, Kotak Bank, Cholamandalam Finance)?

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