Our Portfolio Hits Bull’s Eye!

It is an immutable law in the stock market that words are words, explanations are explanations, promises are promises but only performance is reality. And better performance is what we have showed in our portfolio of ‘Where To Invest In 2009’ that has appreciated by 75 per cent, showing an outstanding performance by beating the Sensex which appreciated only by 71.75 per cent. The best part about our port-folio is that we have managed to beat 69 per cent of the equity diversified mutual fund schemes. It is stated an acre of performance is worth a whole world of promise. If we take a look at what we had stated while recommending the ‘Where To Invest In 2009’ portfolio, then it seems that we have delivered what we had promised.

As a matter of policy, we had reviewed our performance for the 2008 portfolio and it was found below the expectations as we under-performed the Sensex on account of unforeseen circumstances in global markets. Then we had categorically stated that, “We need to raise our bar”. And now when we have out-performed the Sensex and 88 per cent of the diversified equity mutual fund schemes, it clearly indicates that we have actually raised our bar. As the saying goes, victory is sweetest when you have known defeat. We feel proud to have out-performed the Sensex after under-performing in the preceding year.

As with the maxim ‘once beaten twice shy’, after our 2008 experience we had presented a more refined portfolio worth Rs 10 lakh for 2009. Instead of ten counters we had recommended only seven counters and our efforts have paid rich dividends as the value of the same now stands at Rs 17.50 lakh, thereby showing an appreciation of 75 per cent.

 It certainly was an adverse situation for anyone to pick and choose a counter. But we took a bold step of going ahead with our yearly feature. Our efforts have been rewarded with great success. Out of the seven recommendations, two counters have provided more than 100 per cent returns and two have out-performed the Sensex by significant margins. Out of the remaining three, two are up by more than 30 per cent, which is a decent return, and only one counter has remained stagnant (see table: Performance Of Where To Invest In 2009 Portfolio).

We would like to remind our investors that our performance is not a just a fluke. While recommending a portfolio our editorial desk had stated that, “I feel that a lot of negatives are already discounted in the prices. We have seen a sharp fall in the market in too short a period and that makes me believe that we should do well in 2009.” It further stated that, “Today equities offer an exciting opportunity to be in, provided you have a longer time horizon. The risk versus return ratio is quite tilted in favour of returns. Go against the mass sentiments and you could be a winner.”
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Those who have followed our advice have been surely benefited. So this clearly gives an idea about the extensive research work and efforts taken by the DSIJ team. At the current levels it would be advisable to book profit in three counters that have appreciated by more than 100 per cent and one counter that has managed to out-perform the Sensex. The simple reason is that the counters have overshot our targets and also managed to beat the benchmark index. Similarly, it will be prudent to exit Kalindee Rail Nirman and divert the funds to some other counter recommended by us in other columns. Hold the other counters till the next review is carried out.