As I had said in a previous post, I have taken a decision to build a secondary portfolio with an investment of about 8 lacs. The objective of the portfolio is to use it in about 8-10 years time for some life goals such as travel or as a cushion for future health expenses.
I had started building this portfolio more than a year back and there have been some negative surprises in the short term. For example a software product company in the Customer engagement space has great potential but poor results and it’s price has been beaten down much more than what I had anticipated. I had bought 500 of Intense Technologies at an average price of 91 and today it is languishing at 40. However, I have reason to believe that the company will perform in the future and it made sense to invest more in it.
Other investments included Federal Bank and Yes Bank – the first as I like their business model and my batchmate in IIMC being the MD there, the second as it is a private bank with short term problems but real good long term potential. In both these cases, the price fell much below the initial buying price and it made sense to add it.
Then there are others like Tata Motors that form a good part of my primary portfolio ( not to be confused with this one ) and I had invested in it here too. Again, with the brutal price cuts the counter had suffered recently, adding some more there was an obvious choice. It may take time to recover but this is an eight year portfolio after all.
Some midcap companies in my primary portfolio such as Global Vectra and Orient Abrasives had fallen to half their 52 week highs and were a good buy now.
The rest of the stocks added were based on recent market trends. The OMC cuts were again brutal and it was truly a case of the market over reacting to a fairly run of the mill cut in fuel prices, which will not affect these companies in the long run at all.
So here is a list of stocks I have bought recently :-
- Intense Technologies
- Global Vectra
- Orient Abrasives
- Federal Bank
- Yes Bank
- Tata Motors
- Elgi Equipment
Note that I always buy in lots of 10000 or 20000 maximum, depending on the price of the stock. Some other information that may be of interest is as follows :-
- Total investment in the portfolio is about 3.65 lacs as of today.
- Courtesy Intense Technologies, Tata Motors and PNB the portfolio is significantly in the red but I am not worried about that.
- I will continue to put more money in some of the above counters, look at other Nifty stocks that have been beaten down badly and check out some selective midcaps.
- I am expecting some cash inflows in October and November – this will be used to buy stocks for building up the secondary portfolio.
- As of now, I am in some cash and look forward to buying more in the next week, based on where the market heads.
I will come back after Dussehra with another post outlining the new purchases. Wishing all my blog readers a very happy Navratri, Durga Puja and Dussehra.