@The Alchemist wrote:
I think you have too many (number) of shares for your portfolio size. 19. reviewing your cost in hindsight, your cost prices are above their intrinsic values for most of these shares except for perhaps NTB & LGL.
your options are as follows -
1. Do nothing. when & if the "Bull" returns, a rising tide will lift all ships and hopefully you will minimize your 43 % current portfolio loss to 10-15 %. only problem is cannot tell the timeframe, maybe next week, next month, next year or 2015. As buffet said, time is a friend of good businesses (company's) and a enemy of mediocre ones.
btw - This is not an attractive option to me.
2. Sell everything and cut your losses and invest in an FD and live happily ever after.
3. Sell everything and identify & invest in 2-3 super shares in order to recoup / recover your losses. This is an attractive option to me but only problem is what shares to invest ? thats the Rs 242,000 question !
For pt 3, you have the following options -
1. Avoid Plantations, Hotels, Retail, Manufacturing (only select) and Banking sector stocks.
2. In Banking, Finance & Insurance sector, some possible good options are Comm Bank, NTB, CFIN, ALLI, CDB, JINS, & CINS (x).
3. Look for Undervalued Value shares trading at steep discounts to their intrinsic valuations - GUAR, CINV, RENU, CABO, CIT, CFI, COLO, LMF etc
4. Good Diversified company's at current levels - DIST, HEMAS, CFLB.
5. Speculative Hot shares where the trend is your friend maybe ? JKH, LLUB, CTC, CINS (x), NEST. (btw - i am not recommending these just stating the current trend).
6. Select manufacturing & constructions shares that should do well in the future - AEL, TILE, TJL (?) etc
7. Select Hydropower company's according to Chinwi's wet year with super rainfall theory.
8. Speculatives shares as per Hariesha's list.
Above is not a comprehensive list but some that came to mind. I think your current 19 share porfolio will even underform a potential Bull run in the future. so switching to 2-3 shares in above category of stocks which are at reasonable current valuations.