What the index has been telling me is that it is those two or three stocks which have been holding the index value from disintegrating further. Like all the retail investors, the fall in the mid cap stock values too have been dragging my portfolio value lower. However I have still been buying into my existing portfolio, the only comforting factor being that the quantity available for the sum that is deployed now is far more than what was available six months ago. I have been taking solace from the fact that I do have one or two out performers in my portfolio which have not fallen much. In fact I sold one of my stocks which was trading within a 10 -15% range from the 52 week high. I felt it was fully valued at the current price and the same money could fetch me better bargains in some businesses I have been closely tracking……………
I sold a “lubricants” company which fetched me handsome dividends. But the rise in the stock price (not that I am complaining) makes the yield percentage a little less attractive. Further, auto industry facing recession, I felt I would be better off selling this company and buying another. I added two of my existing stocks. One is “Indian hotels” and the other being “Voltas”. I am a little skeptical about “Voltas” as it is an infrastructure related business. But its huge cash flows and robust order book along with cheap valuations further enticed me into buying into the stock. Also the thought that one should have an infrastructure business for an emerging economy like India egged me further. Also, having bought the same stock at much higher levels gives me another compelling reason to buy the same. As for the hotel stock, it has been my constant favorite. This is one industry which has entry barriers due to the high real estate requirements. Also the shift of the younger generation towards spending and having more holidays, eat-outs, parties also adds to the “appeal” of the business model. The fact that both the companies managed by the conservative “Tatas” too had its say! Anyway, I will know only after a year or two if my investments paid off! So like everybody else I too am in the waiting!!