Lockdown Investment Diary Note 1

 I am writting my notes that I have written during Covid19 lockdown.this investment thoughts is with respect to Indian stock market.

27th Feb 2020:- Sold all India Cement , 400 shares at 103 and made nominal profit.Market is going down with fear of Covid19 , I decided better to sit on Cash , India Cement is not great company, I got opportunity to exit at nominal profit which can be use to by other bluechip shares.

9th March 2020 :-Morning Sold all Ambuja Cements shares, 302 shares at 200 Rs, generated 60k cash, Nominal loss 4%, sensex down 1800 points almost 4.5%.Used same cash to by following shares.

HDFC Ltd at Price 2017

HDFC Life at Price 524

AB Capital at Price 69

ITC Ltd at Price 174

Marico at Price 272

I also sold HDFC Tax saver Mutual fund to generate Cash 60k

Reason to sell Ambuja Cement, Market tooks Danger, look like it will correct more, Better to have Cash in hands to buy during panic.

12th March 2020:-Landslide Correction in market.Sensex fall almost 3000 Points, I have bought shares aggressively with whatever cash I have.Fear of Covid19 is increasing. following shares bought today.

HDFC Ltd

HDFC Life

AB Capital

Vedanta

ITC

Reliance Industries

Nipppon Asset management

Tata Power

Tata Steel

Godrej Consumer

Marico

13th March 2020

After Hitting lower circuit Market bounce back with 1200 Points upside on sensex. Covid19 fear is still in market.

bought following shares

HDFC Ltd

Marico

Godrej Consumer

HCL Technology

I wish , I could have more cash to buy, waiting for salry day.

16th March 2020

Sensex down again 2700 points, Heavy selling

bought few more shares, now running out of cash

HCL Tech at price 451

HDFC Ltd at price 1896

Marico at price 263

Nippon Asset Management at price 280

Dow Jones down 10% , lower circuit hit, I think tomorrow we will see lower circuit in indian Market, planning to buy more if there panic selling.

Asian paint:-Waiting for correction to buy stock is it good strategy?

Last more than year I am tracking stock of Asian paint. I like brand value and market share of Asian paint in industry. Also country like India where number of consumers is very large, demand of paint will remain firm. Also Asian paint major supplier of paints to growing Indian automobile industry.

While selecting any stock I always check track record of company on fundamental basis and what value company going to add minority stake holders(retail investor like me).Fundamentally Asian paint is sound company with strong management and good cash flow, but it is not always important that company making profit or not..But it is more important that company have tendency to share the profit with minority share holders. Dividend is the scale that I use to check this. Asian paint have very long track record of dividend. This is high dividend yielding company which makes me attract to buy share in Asian paint.

While making any buy decision I always look into price to earnings ratio of the share. Historically Asian paint have P/E value between 25-33.when I start look into this share it was around 1900.becuase I m very cautious about P/E ratio and have mentality to buy only when P/E is bellow 20 I keep watching the stock to see if P/E will come bellow 20 and I will start buying the stock.Unfortunitely my assumptions become wrong and stock moved from 1900 to 2700 in one year (i.e. 33% up) .

Finally I realized that if you found company with very strong track record, strong management, high dividend yield, brand value..Waiting with hope that “let the stock correct and I will buy” will not always work. Better we should initiate some position in such strong stock and keep buying systematically and if you are lucky enough to get such opportunity when stock corrected then buy more quantity. If you are long term investor who believe in fundamentals and strong management then price change of stock by 10-15% is really relative which should not going to change your view about company in long term.

Asian paint is good lesson for me..And finally I made my mind to buy Asian paint in stagger manners.

“Don’t Be always fearful…………..sometime it is good that you are little greedy”

My PortFolio

Company	Sector
PowerGrid	Power(PSU)
NTPC	Power(PSU)
Tata steel	Metal
dena bank	banking(PSU)
hindalco	Metal(Non Ferus)
larsen	Capital Goods
bank of india	Banking(PSU)
hindustan zinc	Metal(Non ferus)
Reliance Industries	Oil and Gas
Satyam	IT(was opportunistic buy during Raju scam when price came down extremely Low)
Kalyani Steel	Forging and Rolling
Reliance communication	Telecommunication
Cairn India	Oil and Gas
NHPC	Power(PSU)
Bajaj Holding	Holding and Investment

Company in My Watch list

Asian Paint	FMCG
TATA chemical	chemicals and fertilizers
Exide	auto ancillaries
clutch Auto	Auto ancillaries
crompton greaves	captial good
M&M finance	NBFC
South Indian Bank	banking Private sector

HDFC                      NBFC
Pedillite                     FMCG