For me the year 2013 was a dramatic trading year. Very different from my normal years – paid much more brokerage in 2013 than I did in 2012. No not cribbing about my broker’s earnings – he did EXTREMELY well unlike many of his colleagues who closed down. It was really a terrible year for the brokerage industry. 3 big brokers called me saying ‘If we do training will our brokerage income go up?’ – and I did not have an answer.
My trading this year was helped by 4-5 rounds of buying and selling of Bharti Airtel and Reliance Industries. Currently I still hold an investment position in Reliance (as of 01 Jan, 2014), a very very small portion of Bharti but no trading position.
I guess I was also very lucky when I sold Coromandel International and EiD Parry at very good valuations. Not that I was pessimistic about these companies, but in a weak market, I did not find any reason to be holding on to a position which I knew I could buy into later. Lucky because I bought lot of shares of Liberty – and the merger of Liberty into Coro gave me a very very good arbitrage opportunity. Fair enough to say when Coro was sold at 325 I had no clue that I will be able to replace it by buying it at about 110 (Liberty!).
EiD parry I sold because the government is s….g up the sugar industry and that is not good. Also when Cargill plant ran into fuel problems, etc. the interest burden took a toll on its EPS. So a short term strategy was to sell Eid and sit on cash till it fell. Thank God, it obliged, and I have bought it back.
In the middle of the year enthused by a falling rupee I picked up a lot of auto ancillaries – Pricol, Sona, and of course the best of them all Tata Dvr and Ashok Leyland. Ashok Leyland and Sona I got lucky – I bought at almost at the lowest recorded price and decent quantities. Ashok Leyland and Tata Dvr have of course done well, but Sona has more than doubled in 4 months. In fact closed a part of the position in Sona. Nice to take some money off the table in a rising market. Also nice positions in blue chips like Carborundum Universal (auto dependent did u know?), Timken, etc. helped.
Also did well with trading positions in cement – Ramco Cements, not so much in KCP, India cements (bought when thanks to BCCI vs Srini fight people thought cement will go out fashion!!!), Kajaria Ceramics (trading and investing), and the FMCG boom helping Essel Propack…
Still the most unbelievable money making deals were in Hindalco and Tata Steel!! At prices of 90 and 210 they were screaming buys. Simply screaming. Come on, way below book you could not have gone too wrong. Bought it for the long term but a very quick rise meant I sold off. Old portfolio positions on both continue.
Of course some trading in BFSI – I will not name the companies, but currently hold a position in some banks, went short and covered in one NBFC (happy to buy 5 year puts on this stupid company), and went long on Cholamandalam Finance apart from trading heavily in Chola.
– One big blunder was buying Hindustan Oil at a high price. Did buy some at 30 too, but my big position was at 90+…and that hurts. I wish I had closed some part of the position. My mistake was missing out one very important news item about the company.
-In some counters not doing nice quantities.
-In counters like Cummins, Siemens, etc. NOT SELLING AGGRESSIVELY for covering – did very small quantities, could have done better.
– Holding on to one banking stock which is not moving – especially since it was a trading position.
– Having bought some psu shares for dividend yield. NTPC has been beaten down further. No clue why I thought when Cummins comes down, NTPC will be spared. Partially covered this mistake by shorting Coal India, but not aggressively enough, in terms of quantity.
-trusting old house managements. Need to review on 2-3 houses – standards seem to be slipping and that is scary.
– very aggressive bet on one group, COMPLETELY dependent on ONE MAN. If he dies, 14% of my equity portfolio takes a hit 🙂 Hope God gives him a long life. No. I will not name him.
…well, well over all a very good year.
Out and Out ‘gambling’ that I did was Deccan Gold and 3i Infotech. No great fundamentals to go by, but held long positions and exited at excellent profits. No longer holding a position in 3i Infotech, but still hold a decent size portfolio in Deccan…..
A few transactions ensured that I beat the sensex and of course the Tech – Tcs, Tech Mahindra, …and a few smaller ones helped. And the fact that the original portfolio contains Fmcg (read Pfizer, colgate,nestle, PnG, gillette, hul, ) helped.
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