Ha there could not have been a more misleading title..but it was perhaps the best way to attract you!

‘Subra Sir, How is Tata Steel ?’

My take:

“Darling I do not know whether you :

Want to be a vendor to Tata Steel?

Want to takeover Tata Steel?

Want to be a customer of Tata Steel?

Want to marry a guy from Tata Steel?

Give your house on lease to them? Take up a job offer, do some consultancy………………….et al..

You get the draft, right?

Recommending a share or any instrument is not so easy. It is like calling up a doctor and saying ‘this new Diabetes medicine has been introduced…should I take it?’ .

If I am a doctor I am going to say ‘Hey listen,

1. who are you?

2. when did you last check your BS? (Blood sugar, not bull shit)

3. what changes in your diet have you made?

etc. etc.

then I might consider answering the question.

Now in my portfolio let me pick up a few shares – Reliance, Tata Motors DVR, Bharti Airtel, Coromandel International.

These shares have been offering a great price volatility – and allows me to do what is called a ‘Delivery based Trading’.

Let us take the case of Reliance…let us say I have 3000 shares in my portfolio.

I have no issues buying say 500 more shares at 770 or thereabouts and selling it 875 and above.

This could even mean a boring 5 transactions of 100 shares each …on the way up and sell them at various prices. What happens if I have bought say 200 at 770 and it goes to 740 – well I have capacity to buy another 300, right?!! Yes.

So if you create a nice ‘dividend yield portfolio’ – you can play on the excess shares without worrying too much about the downside or the upside. I get to play such a game at least 12-15 times a year in scrips like Reliance and Bharti. Both are good investments at say Rs. 770, and Bharti at Rs. 270 – and I do not mind holding them for long.

How long? as long as it takes to double. If it doubles in 5 years, I get a return of 14% and if it doubles in 6 years, I get a return of 12%. Add the dividend to it, and the return goes up by say 1%.

Seriously, I am more than happy with such returns.

PS: these are games that I play. I make more money than I lose, but remember I do many loss making transactions also. If you are doing all this, please do it at your own risk….be careful please…

Related Articles:

Post Footer automatically generated by Add Post Footer Plugin for wordpress.

  1. Nice opening line as gambit !! Even seasoned investors would fall for it.. And LOL on the tat motors stuff – so many notions that can be made out with that single line !! :-)))

  2. Hi Subra, a lot has been talked about cost averaging and stuff when the price goes down, but little has been talked about profit booking on most financial blogs. When do you book your profits? Do you just buy and keep it for 5 years? At the end of 5 years, if there is a correction, won’t bring down your profits to FD percentages?? Do share more light on the same.

  3. @Amrut, I sometimes think it might be better to book profits at say 25% and re-entering or so than wait for the whole 100%..I am totally new to investments in equity and guess it is the gamblers urge 🙂

Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes:

<a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>