DancingTaco
DancingTaco

Do you invest in direct stocks? If yes, how do you measure a company's performance/due diligence ? do you simply invest in large caps ? Share your portfolio guys !

27YO. I have been investigating for the past 1 year ...every month 5k in stocks, 2k for hdfc, 3k for Infosys..Current portfolio of 87k..6k in profit....will expand when salary increases after switching..share your portfolio .

18mo ago
DerpyCupcake
DerpyCupcake

Invest in large caps via MF, and play around in mid and small cap in stocks

DancingTaco
DancingTaco

I don't agree....in fact invest in mid and small via MF (because they're most risky) and you can play with Large caps at your own risk as they're the least volatile...

DerpyCupcake
DerpyCupcake

Everyone is entitled to have their own view. I'm sitting on 1.2L profit in MF over 1 years.
Risks depends on individual and age as well, so what I suggested is save investment.

PeppyCoconut
PeppyCoconut

Your portfolio is concentrated into just 2 stocks, if there’s a downturn you’ll loose capital.

Since the index may go up but individual stocks may not.

The primary thing to keep in mind is that the raw material is money and you need money to make more money here.

Actively work on increasing you income for your day job.

Do SIP into index funds and with time slowly move into stock picking as you learn more.

There a lot of stuff to stock picking:

  1. You need to have good knowledge about the sectors

  2. You need to study the competitors and find out what the differentiators are, what sets a company apart ie, the competitive advantage.

3)Regarding the due diligence part, you need to learn accounting especially the forensic checks, read auditor report in the annual report etc.

  1. You need learn how to read financial statements and the annual report too.

And these are a very few pointers, it is very hard to do equity research with a 9-5, we can’t and won’t be able to do factory visits, talk to clients, distributors etc.

I’m also interested in stocks, but I have fully understood the fact that it’s not as easy as it seems, so sticking to MFs.

Look into Marcellus, SOIC youtube channel, don’t but the stocks but listen and understand more especially SOIC’s analysis. SOIC also has a course.

JumpyNoodle
JumpyNoodle
Google18mo

Infosys and HDFC don't have lot of draw down usually. So he should be okay.

If he is investing for long term, this should be fine.

DancingTaco
DancingTaco

Yup, I want to pass down these shares to my kids.. that's why I accumulate every month and on all dips..

FluffyKoala
FluffyKoala

Invest in your self that will outperform everything

DancingTaco
DancingTaco

That's true but only up to a limit... stocks can provide Passive income (rent/dividends) so that's also imp

ZoomyMuffin
ZoomyMuffin

I prefer MF to direct stocks.

Direct stocks are too much work, need to followup with news and earnings, and need to monitor.

Even multi bagger returns on my investment amount is not significantly worth the effort. Stock picking as passive investment is a lie, rather play office politics and earn more.

ZippyWalrus
ZippyWalrus
EY18mo

Start evaluating fundamentals of the company in any particular upcoming theme/trend. Learn some basic technicals and go after small/midcap equities operated by clean promoters. Stay out of FOMO. You might get few shortfalls in your pf but then few stocks turn out to be multibagger and that balances out the pf with a decent return (much more than your imagination).
Happy learning and investing!

SwirlyTaco
SwirlyTaco

The Titanic has just set sail.

There are reasons why people don't do this, but you need to learn through the experience and with your own money for it to be fully understood.

Sit tight, its going to be a choppy ride. A lot of what you do with the investments depends on your temperament in the drawdowns.

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