TIPBlog Portfolio Update: 2010 Year End

The Year 2010 can be summarized as continued optimism, scams, change of guard at IPL, food rotting in warehouses, revolutions in middle-east, deflection from fragile European economy, etc. As an individual investor, should I care about macro economics? or Should I care what a bollywood celebrity’s dog does? They are all interesting stories, beyond which it has no value. This post summarizes TIPBlog portfolio update and measures progress. Earlier updates are listed under progress updates.

The 2010 year end status update is as follows: Continue reading rest of this article…

TIPBlog Portfolio Update: 1H 2010

UpdateThe 1H2010 can be summarized as return of optimism, in economy, in stock markets, stabilization of global economy, and fears about euro zone. As an individual investor, should I care about macro economics, or should I even worry about what happens to Greece or to euro currency? Ambani brothers patch up and there are stories its good for markets and business! To me, being stalwarts in India Business world, instead of setting an example, it was idiotic for them to even fight and drag each other into courts. These are good academic discussion, but I doubt it is going to help in your own portfolio. I am taking stock of my portfolio.

My last progress update was for year end 2009. This post summarizes TIPBlog portfolio update and measures progress for 1H 2010. Continue reading rest of this article…

TIPBlog Portfolio Update: 2009 Year End

UpdateWhat a year 2009 was? At the beginning of the year, the stock market was trying to find how deep the abyss was. Every other participant in the equity market was trying to run away like there was no tomorrow. Fast forward to second half of the year. The story changed and now the stock market is trying to find its peak. It was in true sense a roller coaster ride.

When the equity market goes up like it did in later part of the year, it gives a false sense of confidence in our abilities to pick stocks. Irrespective of what one thinks, any company stock you had touched in second of 2009, it has zoomed. It really did not matter which company stock it was! Lately, I have seen quite a bit of emails trying to point me towards how the stocks that I negated (or did not pick?) have zoomed up and made them money. I do feel happy for everybody who made good money in 2009. I wish you had shared those winners with readers of this blog. We all want to make money here. Right? Continue reading rest of this article…

Risk Analysis of TIPBlog Portfolio 3Q2009

riskOne of the most neglected aspect do-it-yourself investors is performing a realistic assessment of their portfolios. I have adopted a very disciplined approach to make sure I follow my quarterly regime of reviewing the progress. First step was to check out the status. Second step is to understand risk, and third step is to make changes (or execute or re-balance if necessary).

In earlier post, I presented the progress update of TIPBlog portfolio. The next step is to analyze risk in the context of my personal risk profile parameters. The objective of this risk analysis is to make sure that TIP portfolio is not exposed to any particular event, or company, or any other aspect that will affect portfolio performance.

My portfolio management process has a risk management process in which I try to:

  1. Maintain pre-determined asset class allocation;
  2. Maintain pre-determined diversification, any sector should not exceed 10%;
  3. Any single stock should not exceed 7% of the portfolio; and
  4. Dividends from a single stock should not exceed 5% of total dividend cash flow.

Continue reading rest of this article…

TIPBlog Portfolio Update – Third Quarter 2009

UpdateThe 3Q2009 can be summarized as quarter of recovery. In my post SENSEX trends, I looked at quarterly earnings and profitability which showed signs of positive growth. It still remains to be seen whether this growth is sustainable and how long it is going to continue.

It is important for all do-it-yourself investors to make sure they are monitoring their portfolio and keep tracking of progress. Last progress update was for 1H2009 and was discussed in early June 2009. This post summarizes TIPBlog portfolio update and shows progress.

Continue reading rest of this article…

Income Portfolio – Quarterly Update 1H09

updateOne common question that I continue to receive is about the efficacy of long term investing. The notable factor is almost all of them use two specific examples to explain that long term investing is not a viable solution. These examples are (1) Stock market tanking in 2008; and (2) Satyam going kaput.

To begin with, it tells me that many do not understand what is investing. Folks who ask these questions do not understand long term investing. I keep wondering, how to best explain what is long term investing.

In general, first half of 2009 can be characterized as roller coaster ride. While we saw multi year lows, at the same time, we also saw historical one day rally. In my post bull running for red flag, I showed that majority of SENSEX companies are showing reduced earnings. And surprisingly, it is being rewarding by increase value. I continue to believe, there is no way any individual can predict the markets. So who bother wasting time on it?

Continue reading rest of this article…