When I started this blog, one of the objectives was to share my journey in achieving my long term wealth building goals. In the process, I expect to continue my learning process by discussing contrasting views, and hopefully make smaller mistakes. This page acts as a one stop location to describe my investment process in a broader context. You may also consider this as an index page which I will update as and when necessary.

Step 1: Investment Goals

These are series of articles which shows what went behind setting up my goals and what my thought process was in this process.

• When to Start Investing
• Alternative Income Streams
• Long Term Investing – Don’t Create Your Missed Opportunity
• Overlooked Aspects of Dividend Investing
• Dividend Myth Busters
• Dividend Investing – Few Tidbits
• Feasibility of Portfolio Dividend Cash Flow in Year 2020
  
• Secret Asset for Wealth Building
• Compounding Dividend much Better than Compounding Interest
• TIPBlog Investment Goals

Step 2: Investment Principles and Rules

Some of this work shaped my investing principles. I describe the rules I use to manage my portfolio. This is a starting point because I do realize that these are intangible rules. In future, I will need to make tangible and quantifiable rules.

• Tipster, You are Fired!
• NIFTY Expected Returns for Different Time Scales
• Number of Stocks in a Long Term Portfolio
• On Limiting Number of Stocks in a Portfolio…
• Various Investment Opportunities – My Explicit No List
• Investing Success Comes from Conviction and Execution Your Ideas – Be honest to Yourself
• Portfolio Guiding Principles and Framework

Step 3: Risk Profile

I discuss how I define my risk profile and how I use it to translate into my investment strategy.

• Rookie Trader or Investor – Turbulent Journey Cut Short
• Making Quick Money in Stock Market is a Mirage
• Common Investing Mistakes of Individual Investors
• Portfolio Risk Management- Its More than Asset Allocation
  
• Defining Risk Profile

Step 4: Investment Options

This provides an overview of my investment strategy and different investment buckets. I have defined my investment buckets based of my objectives. These are not an asset allocation for my investments.

• Value Investing Landscape
• Various Investment Opportunities – My Explicit No List
• Index Investing
• Investment Buckets (Updated on August 05, 2010)

Step 5: Portfolio Performance Matrices and Measuring Progress

Articles here discuss the performance measures I use in evaluating my portfolio. I present different matrices such as my benchmark, cash flow, yield on cost, annualized XIRR, portfolio value, asset allocation, and risk analysis.

• Measuring Progress – Stock Tracker Excel Sheet
• Measuring Progress – Yield on Cost
• Measuring Progress – XIRR as Personal Rate of Return
• Differentiating Asset Allocation and Diversification
• Portfolio Risk Management- Its More than Asset Allocation

Step 6 (a): Portfolio Building – Watch list and Analysis

I discuss how I do my investment screening and further analysis so that it can be put on my watch list or buy list. I use both qualitative and quantitative aspects. I generate watch list and/or buy list based on this screening and analysis process.

• Stock Pre-Screening Process and Metrics
• High Dividend Yield – Good or Bad?
• Stock Analysis Process and Parameters

Step 6 (b): Portfolio Building – Accumulation

Depending upon the available funds at a given point in time, I start accumulating stocks. I may buy new stocks or add to existing ones.

• Stock Buying Process
• Is Exacting a Buy Price Important for Long Term Investing?
  
• Can I Buy Shares at Current Market Price – at Premium?
  

Step 7: Portfolio Monitoring and Rebalancing

Measuring your progress at regular time intervals tells you whether you are going in right direction, and if necessary forces you to make adjustments (i.e. re-balancing)

• An example of Portfolio Status Monitoring
• An example of Risk Analysis
• Portfolio Rebalancing
• Putting Returns in Perspective – Be Realistic in Holistic Terms
  
• Reviewing Buyout Offer
  
• Reviewing Bonus Share Issue
  

Step 8: Exit Plan/Strategy

When I started investing using an income-based approach, I had a very fixed perspective that I will be buy-and-hold investor. However, I have realized that sometimes it is necessary to make midstream changes. If your investments deviate from your expected objectives, then you need to sell. It is prudent to remove an apple gone bad and follow re-balancing strategy.

• Selling an Important Part of Portfolio Management
• Selling is Important – Continuing the Discussion (I)
• Selling is Important – Continuing the Discussion (II)

This provides a summary-level procedural framework for my investment process. The associated articles should provide readers detailed insight into my portfolio management process vis-à-vis its objectives.

Disclaimer: This is my investment process compatible to risk I am willing to take, the resources I have, and the amount of time I am willing to spend on managing it. Individual investors who plan on following this process or advice should evaluate this using their own risk profile and their own situation.