Done With Christmas, Now Let’s Celebrate Diwali

Get your crackers out and start celebrating. Readers of Dalal Street Investment Journal can celebrate Diwali as our Diwali 2013 Portfolio has outshone leading benchmark indices with a significant margin in just about two to three months of time.

Discovering hidden value in stocks and helping our readers create wealth has been a way of life for us at Dalal Street Investment Journal. We have done that consistently and successfully in the past and feel proud about being associated in the wealth building process of our readers. After outperforming the Sensex for the past two years (Diwali Portfolio 2011 and Diwali Portfolio 2012), the recently recommended portfolio of stocks during Diwali of 2013 has also started on a very strong footing. Just to quantify, our Diwali 2011 portfolio returned a humungous 29.33% against 11.21% rise of the Sensex over the same period. Again, the portfolio recommended during the Diwali of 2012 returned 20.85% against Sensex returns of just around 11.48%.

The portfolio recommended during Diwali 2013 has not been far behind either. It is already on a strong footing. Since our Recommendation the portfolio is up by 12.06% as against a mere 2.51% rise of the Sensex. Many may argue that the Sensex has underperformed vis-à-vis other indices like the BSE Small Cap and the BSE Mid Cap index which have witnessed a good run over the past two months. However, our portfolio has outperformed those two indices too. While the BSE Mid Cap Index has appreciated by 5.83% (almost half the returns of our portfolio), the BSE Small Cap index has appreciated by 9.83%.

Here we would like to bring to the notice of our readers that, we had recommended a few counters against the tide. When everyone had written off the automobile sector on account of poor sales volumes, we had recommended Maruti Suzuki as a part of the Diwali portfolio. The Scrip is the highest gainer in our portfolio.

We had even recommended JSW Energy when the scenario was not conducive for power companies. Our judgement was based on the fact that the performance of the company was expected to improve as merchant power prices were likely to gain. We also put a buy on IPCA from the pharmaceuticals sector to lend some stability to the portfolio and Agro Tech Foods to take advantage of any buy back if at all it happens.

All in all the performance of the portfolio so far clearly indicates the strong and in-depth quality of our research. This is just the beginning and there is a lot to arrive going ahead.