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:
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You need to have good knowledge about the sectors
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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.
- 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.
