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Topic: Pankaj 72's portfolio

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basant
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Posted: 08/Oct/2008 at 8:22pm

When you have alarge cap at 10-12 times FY10 and amidcap at 68 times Fy10 it makes more sense to stick with the large cap.

It is true that multibaggers are made from small caps but in times like these the durability of a large cap (sector leader) is more then the smaller capitalized business.

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pankaj72
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Posted: 09/Oct/2008 at 1:13pm

Thanks Basantji for your advise.Keeping in view the panic all over the world , when should we start investing?

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basant
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Posted: 09/Oct/2008 at 5:39pm

I have been wrong but I would still say that these times are the best to be investing.

One should invest when there is panic and despair.

'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in

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master
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Posted: 09/Oct/2008 at 10:42pm

Originally posted by kumardiwesh

Lloyd is not going to grow at a fast pace.You can book losses here.

I don't appreciate or agree with this kind of argument. Booking losses on first signs of red is not the best way to navigate these markets.Though i don't have investment in Lloyd electric, i tracked it for some time. My views are as under:

1. You say your investment horizon is 5 years so i presume you can hold.

2. Fundamentally, nothing much has changed. Major butchering has already taken place, negatives are priced in. Further downside will be market correlated which can happen even for your replacement bet.

3. ROE 16.5%, EPS (ttm) Rs 19.4, FY08-10E CAGR for revenue 27% & 33% for PAT, P/BV of 0.48, PE (ttm) of 2.4, MCap/PAT of 2.42 & dividend 10%. Leader in its segment with m-share of 50%+. At these levels, unless the company is going to wind up, i don't see much issue.

4. For a moment, forget the % it forms of your portfolio. Please check in absolute terms how much is the cash generated worth in absolute terms, if you've to book loss in it at current levels. If it's not large enough to buy your preferred large cap in some quantity, i won't suggest one should exit. On the other hand, if there is further decline, can probably add.

Edited by master - 09/Oct/2008 at 11:02pm

Someone’s sitting in shade today because someone planted a tree long time ago.

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kumardiwesh
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Posted: 09/Oct/2008 at 11:02pm

There are far better companies trading at low prices.

"History does not tell you the probability of future financial things happening" - Warren Buffett

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master
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Posted: 09/Oct/2008 at 11:06pm

Which are the top 3 of those far better companies ?

Someone’s sitting in shade today because someone planted a tree long time ago.

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kumardiwesh
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Posted: 09/Oct/2008 at 11:34pm

This is a subjective call.
IMO HDFC Bank, Titan and Axis Bank.
There are other mid-caps and small-caps too.
It's just a matter of choice and understanding.
I may be completely wrong.

"History does not tell you the probability of future financial things happening" - Warren Buffett

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master
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Posted: 09/Oct/2008 at 11:51pm

I almost knew you'll go no further. What if bholenath's call comes true, and markets fall by another 30% from here.. then again you'll ask him to book loss in these 3 greats. May be some other time, i'll elaborate on what all investors run out of, in bear phase.

And sir, nowhere did i say a small cap like Lloyd is the best company. But the fact is Pankaj is already invested in x company which looks fundamentally ok. Can a small investor go on booking loss with every fall. We need to weigh the incremental risk one is carrying & whether the trade can be managed to one's advantage at a given point.

Pankaj sir, you please take your own decision regardless of my views.

Someone’s sitting in shade today because someone planted a tree long time ago.

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