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Why I remain loyal to my portfolio?

There are many reasons why I stay focused on my portfolio. The most important reason is the Indian macro realty is intact and its long-term story is secure. Further, I don't believe the reign of any single party deciding the fate of this nation. The market and the businesses here are never dependent on political parties for their survival. In addition to it, the external forces too are not permanent but are cyclical. It is clear from the human history that the world and the markets have seen many Trumps and Modis. It's frivolous to think that any single phenomenon or any single person having the capability to kill the market and the businesses.

I am very sorry to say that the market is a den of big gamblers. These people come to market from many places like cricket betting. They generally go for very very short-term trading. They flood the market with their bets when no other betting options are available. They often disappear in milliseconds when they can't understand th…

How to make money in stocks


Many new entrants frequently ask me this question. I think that I have now accumulated enough knowledge to answer the question.

You will be surprised to know that it is enough to follow just 5 to 10 stocks all your life in order to make crores of rupees in the stock market. Yes! What you are reading is an absolute truth I learned from reading and experiencing the market. So, always opt for focus investing. Neither new entrant nor an accomplished investor should hold more than ten stocks in his portfolio.

The newbies must know that investing is not a betting. You have wait years after investing in a company. Further, you must know how to analyze the fundamentals of a stock i.e. PE, BV, ROI etc. One must analyze the company both at the micro level and the macro level. You must closely see how it performed since its inception. Then only, you will realize the real worth of the company, its management and ownership. A realistic assessment of the quality of management and ownership is a crucial thing in buying a stock.

If you follow the company regularly on micro and macro parameters, you will definitely predict when it is going to rise and fall. Follow the news of the company on a daily basis. But, you may ask me when to buy a stock or sell it. You can buy a stock if it falls drastically due to the reasons that are not at all related to fundamentals of the company. You can buy a considerable amount of stock at that time. Then, when to sell it. The right time to sell it is 'NEVER' if the fundamentals are right. So, buying a stock at a low price and keeping it long-term is the thing that ultimately makes a difference in your life. The experience of top investors always supports my long-term theory. I always advise you to invest only the idle money that you hold in your savings accounts so that you may not be compelled to withdraw early. Taking trading as your profession is not a good idea if you want to earn a lot from the market.

Another most important point to remember is diversification. You can't keep your portfolio too narrow with just two or three companies. Only psychologically strong people can do it. So, I always advise you to buy at least ten companies from five different sectors. If stocks from some sectors fall this week, another sector stocks may rise at the same time, so that you won't suffer any mental disturbance due to market fluctuations.


The gist of my suggestions is :

1. Buy only a few companies not more than ten

2. These stocks should at-least be from five different sectors

3. Take the stocks from large cap, mid cap and small cap

4. Remember a company is behind every stock. Analyze the fundamentals of the company before buying its stock

5. Buy the stock when it falls due to extraneous reasons

6. Follow the fundamentals and the news of the stock regularly

7. Never sell the stock if the fundamentals are good

Venugopal Bandlamudi
                         M.A., B.Ed.www.thinkervenu.com

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My portfolio

1. IRB Infra


2. Sanwaria


3. TATA Motors


4. TATA Global


5. Ashok Leyland


6. Gammon infra


7. 3i Infotech


8. Karuturi Global


9. Visagar Polytex


10.Welspun india



Venugopal Bandlamudi
                         M.A., B.Ed.
www.thinkervenu.com

VENUGOPAL BANDLAMUDI., An Active Stock Market Investor & Certified Equity Research Analyst

Knowledge is Power 









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The stock market tips I have learned until now
1) Always buy quality stocks belonging to good companies

2) Buy only a few companies ( less than 10 )

3) Watch them daily

4) Don’t sell the stocks very often

5) Keep them with irrespective of market condition

6) Invest in them long term

7) Buying mutual funds is good, select equity growth option

8) Always maintain a record of closing prices of your stocks

9) Don’t watch too much of TV channels while market is open

10) Don’t be driven by rumors

11) Alwa…

Successfully crossed 100,000 mark

I have successfully accumulated more than 100,000 shares of ten different companies until now. I will add more shares to my kitty in the future if I have any money available with me. Further, I don't want to have more than ten companies at a time in my portfolio. I believe persistence and patience are keys to success in investing