As we enter 2015, lets us look back at how 2014 was for investors.
Thanks to Modi, commodity movements and good valuations, 2014 proved to be an amazing year for investors.
It proved to be an year where losing money was tough!!
My 2014 20 stock model portfolio (posted here) performed as follows-
A few points to note-
1) Somebody cloning the full portfolio and then doing nothing for the full year would be sitting on 131% returns.
2) Avanti & Symphony performed the best (on earnings growth & PE expansion) while Selan, ITC and Nestle performed poorly.
3) Highest return came from Low PE portfolio followed by Medium PE portfolio- clearly shows if you want high returns, small caps- untested names is where you got to be. High PE- proven names will give stability in tough times but will under-perform in bullish times.
While Value picks need Catalysts to do well, irrespective of market mood. For ex- Selan did well for most of the year on the hope of production increase, but when reality proved different and crude saw sharp drop, stock price cut was sharp.
Looking forward, I expect 2015 to be decent (but not as good as 2014) due to loose monetary policies in EU and Japan and lack of good investment opportunities (other than India) for FIIs.
Due to SEBI regulations, I won't be posting model portfolio for 2015.
Thanks to Modi, commodity movements and good valuations, 2014 proved to be an amazing year for investors.
It proved to be an year where losing money was tough!!
My 2014 20 stock model portfolio (posted here) performed as follows-
| VALUE PICKS | LOW PE | MEDIUM PE | HIGH PE | ||||
| Nesco | 121% | Canfin | 187% | Repco | 91% | Page | 127% |
| Selan | 17% | RS | 199% | Astral | 138% | Itc | 14% |
| Piramal | 51% | Acrysil | 191% | Ajanta | 146% | Nestle | 20% |
| Noida toll | 62% | Avanti | 538% | Symphony | 359% | Gruh | 113% |
| Ilfs Inves | 40% | JB | 56% | PI | 109% | Sun | 46% |
| AVERAGE | 58% | 234% | 169% | 64% | |||
A few points to note-
1) Somebody cloning the full portfolio and then doing nothing for the full year would be sitting on 131% returns.
2) Avanti & Symphony performed the best (on earnings growth & PE expansion) while Selan, ITC and Nestle performed poorly.
3) Highest return came from Low PE portfolio followed by Medium PE portfolio- clearly shows if you want high returns, small caps- untested names is where you got to be. High PE- proven names will give stability in tough times but will under-perform in bullish times.
While Value picks need Catalysts to do well, irrespective of market mood. For ex- Selan did well for most of the year on the hope of production increase, but when reality proved different and crude saw sharp drop, stock price cut was sharp.
Looking forward, I expect 2015 to be decent (but not as good as 2014) due to loose monetary policies in EU and Japan and lack of good investment opportunities (other than India) for FIIs.
Due to SEBI regulations, I won't be posting model portfolio for 2015.
