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How Many Stocks To Keep in Portfolio Notes

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23 views2 pages

How Many Stocks To Keep in Portfolio Notes

Uploaded by

deepgyan780
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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How many stocks to keep in portfolio – 15 max 20

How many sectors (farma, It, banking, FMCg, etc.) 5

Follow Top down approach

Each sector must not be above 20% of invested amount

Large cap-40, mid cap-30, small cap-30

Don’t run exactly behind 20%

How much to allocate in each stock - 5%

Average your winners

Have a good review system don’t make it complicated

CA Tapan Doshi
Secret 1 - Portfolio Structure
Rule - 1 - No. of Stocks (Around 15 Stocks)
Rule - 2 - Sector Allocation (5 to 6 Sectors)
Rule - 3 - Sector Exposure (Max 20% in One Sector)
Rule - 4 - Diversification (Across Large Cap, Mid Cap, & Small Cap)
Rule - 5 - Script wise Allocation (Max 6% to 7% in One Stock)
Rule - 6 - Average Your Winners (Add Stocks Going up with Good Results)
Rule - 7 - Periodically Review (Every Quaterly or Big Events)

See if there is any sector 4-5 multi beggar stock

See which sector government is supporting

Tailwind/headwind

Management analysis

Financial analysis

Entry, addition and exit

Secret 2 ? Multibagger Stock Picking

Rule - 1 - Moat Analysis (Both Stock & Sector Moat)

Rule - 2 - Identifying Megatrend (Big Sector Tailwind)

Rule - 3 - Macro Indicators (Global & Govt Policies)


Rule - 4 - Management Analysis (Track record & Guidance)

Rule - 5 - Financial Analysis (P&L, B/S & Ratios Understanding)

Rule - 6 - Entry, Addition & Exit (Business Stage Analysis)

Rule - 7 ? Future Projection (Sector & Company Prospects)

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