- Buy MAZDA around Rs 110, higher than my target of Rs 98. I was sensing MAZDA will move and possibly never come back to sub 100 levels for a long time now
- Sell SRF around 225, below my target of Rs 235. I was fearing that it'll possibly have many more poor quarters, and due to dividend, will never come back to Rs 235 in next few months.
So, I acted and reduced my holding in SRF by ~45% and increased by holding in MAZDA by ~80%, so that now both are nearly 4-5% of my portfolio. I did not get enough chance to catch MAZDA below Rs 110 since it has run away in last 3 days. But I'll now wait for it to cool down a bit before making my final trance of purchase.
Additionally, I made another purchase. After CROMPGREAV fell ~10% post results, I made about 55% of my original holding and increased stake in CROMPGREAV. The rationale is
- Losses have been due to ongoing restructuring in EU
- The stock will easily move back to 125+ levels in next few weeks
- I can buy low and sell high and reduce my average cost for holding it for long term.
I know, this is not the best rule, but I had surplus funds, and no other opportunity, and a very strong conviction that in the current environment, CROMPGREAV will easily more up to 125-130 levels when next leg of rally comes, and I'll trim back my holding to 10% of portfolio level. The plan is next to use the rally to trim back CROMPGREAV & BHEL to 10% level, and possibly also exit PNB completely at around Rs 130, Rs 260 and Rs 830 levels. Yes, they might move even higher, but I won't be greedy. I can use this cash proceed to pay off some short term debt that'll soon enter my balance sheet, or otherwise re-allocate in some other opportunity I spot that's better to help my portfolio diversity (about which I'll soon write...)
Next, I'll write about the following topics:
- Portfolio allocation
- Market valuation gap, trying to analyze Amara Raja batteries from a different perspective. This is another stock that has run over 20%+ in last 3 days.
Dont you think there is too much activity in your portfolio?
ReplyDeleteWhat about brokerages and other costs? Shouldnt they be considered too?
Hi Dev, thanks for the feedback.
ReplyDeleteThere're two reasons for this. I've been learning since last 11 months, and I don't think I can learn by reading and then come and execute flawlessly. So, I decided to learn, keep learning and put this to practice.
Second, yes there's a lot of activity, but then, my portfolio is in acquisition mode. Also, as I said, I did not increase my exposure, neither I added new investments. I only re-allocated capital among existing investments in my portfolio. I've tried to limit "selling" positions, until I realize it was a mistake buying a stock, or buying large quantities.
Indeed brokerage and other costs are included in my portfolio.