Yesterday while watching highlights of one of the IPL game I noticed run out and straightaway found that running between the wickets was bad and that resulted in fall of wicket. Straightaway reflecting on the market in last 2 months we had great rise and then great fall. To be more precise check the chart below:

NSE-Chart

 

This period of time was also very crucial as it was reporting time. People were expecting great results from the corporate but I think these corporatists missed out in delivering it. Its time to recheck the financial health of the stocks we own in our portfolio as many investors portfolio’s might have gone through the great pendulum swing in last 2 months.  Many of us might be looking for the opportunity to sell the bad stocks they feel they own in their portfolio. But find it difficult to sell and book losses. Moreover its just not the losses they are making but also the opportunity to make money is missing. This is the great dilemma for every investor. These days even I was in dilemma when Bharti Airtel came out with its results. When I did its health check up, it came in B1 rating. Normally I don’t buy any B1 rating companies but this was not about buying. This was about what to do with it when that stock is in portfolio. I came to conclusion that lets give them 2 quarters to perform and then see how the financial health looks. If it deteriorates then get rid of it and if it comes back on track then its already in your portfolio. Well I face these kinds of situation every day working as a fund manager. But I understand how crucial it is to take decision specially when you are not professional in that field. You need something to stand by on. It is very hard to keep us well-informed investor, as there is always lot of noise outside. 

It is very important to do the due diligence of every stock before investing. It helps to cope with the volatility and downfall in the market. I believe if you do your research on evidence base you will recognize the healthy stocks and avoid the unhealthy one.Let me share with you how my portfolio reacted with this swing. Surely, such swings also affect me.

Code

Name

Rating

Date bought

Price

Current price

% Change

IGL

Indraprastha gas

A1

21-Mar-11

294.65

$340.10

15.43%

BHARTIARTL

Bharti Airtel

B1

21-Mar-11

318.2

$370.70

16.50%

CANBK

Canara Bank

A1

21-Mar-11

606.75

$542.70

-10.56%

ABCIL

ADITYA BIRLA CHEMICALS

A1

26-Apr-11

138.25

$121.40

-12.19%

ONGC

ONGC

A1

3-May-11

293

$277.40

-5.32%

AMARAJABAT

AMARAJABAT

A1

4-May-11

184

$207.00

12.50%

HEROHONDA

HEROHONDA

A1

4-May-11

1600

$1,802.75

12.67%

BAJAJHLDNG

BAJAJ HOLDNG

A1

11-May-11

771

$757.05

-1.81%

BALMLAWRIE

BALMLAWRIE

A1

12-May-11

566

$565.75

-0.04%

BANKBARODA

Bank of Baroda

A1

12-May-11

880

$863.25

-1.90%

 

Over all portfolio

 

 

 

 

2.53%

 

 

 

 

 

 

 

NSE

NSE Nifty

 

21-Mar-11

5364.75

5438.95

1.38%

Looking at the table above, my portfolio is still up by 2.53% compare to NSE Nifty up by 1.38%.  I was almost up 15% and have also swung in negative of around 3% during this volatile market. My portfolio is almost performing 83.33% better then Nifty.

What makes IGL, Bharti Airtel, Canara bank, ABCIL, ONGC, AMARAJABATTERIES, HEROHONDA, BAJAJHOLDINGS, BALMLAWRIE and Bank of Baroda an extraordinary business?  What is the formula of getting best results?

It is their financial health check and that extraordinary business model which is hard to replicate makes them different from others. The other most important thing is to what price to buy these A1 quality stocks. The extraordinary result I have got from my portfolio is because I have bought these businesses at discount.

The reason to share my portfolio is to keep tracking it in coming months and see how these companies perform. If you have any insight on the above companies please feel free to share on my blog on valueoperationsdotcom or over here. I keep performing financial health checks of all company every quarter.