My stock portfolio analysis: total return 22.58%

Published: December 21, 2020 at 10:18 am

Last Updated on December 29, 2021

This is an analysis of my stocks portfolio which has so far fetched a total absolute return of 22.58% (including dividends).  Before we begin, several caveats and considerations are necessary.

(1) The stock portfolio is about 16.5% of my equity mutual fund retirement portfolio; (2) The portfolio is relatively young and both the absolute returns of 22.58% and the CAGR of  33.35% should not be taken too seriously; (3) Technically the portfolio was started on Oct 2014; however, 58% of the total transactions made and 71% of the total capital is less than a year old; (4) No transactions were made in the dip – that is during the March 2020 fall. (5) These stock investments are in addition to my regular goal-based mutual fund investments.

The returns that you see is simply the residue of luck. It has nothing to do with my stock picking abilities. If anything, it shows a lazy approach to stock selection has so far done reasonably well. Both the reader must and writer must keep in mind that the portfolio is being evaluated during a time when the market has zoomed up. The real test would be with age and during an extended side-ways market.

Stock picking strategy

Cartoon depicting how readers analyse my stock portfolio more than I do!
Cartoon depicting how readers analyse my stock portfolio more than I do!
  1. Choose stocks with little or no evaluation or analysis
  2. Choose low volatile stocks with good financial health (low debt min requirement)
  3. Choose stocks that tend to trade close to their all-time highs (approx momentum indicator). See for example A list of stocks that have traded close to their “all-time high:
  4. Do not be afraid to pick expensive stocks – both in absolute price and valuation. Note: Value investing may sound intelligent and enticing but it is essentially riskier. I neither have the age to take on such a risk, nor the qualitative insights to pick stocks that the market has shunned but will be discovered sooner than later. To appreciate the risk associated with value investing and why it is more qualitative than quantitative, see this analysis: Is it time to exit ICICI Value Discovery & Quantum Long Term Equity?
  5. When in doubt, ask your wife when she is just about to fall asleep in the afternoon.
  6. Do not fear dividends (or rather dividend taxation): I had (extremely) small exposures to (only) dividend payers like IOC and CoalIndia; Have no problem with such stocks; I removed them only to trim down the portfolio and exploit their capital losses – offset them with rebalancing gains from my son’s portfolio.
    • What matters primarily is company health. Whether it is a dividend payer or not is incidental. That is, it makes no sense to say no to a company only because it pays huge dividends! Just as it makes no sense to sell a stock because it has increased dividend payout.
    • All stock investors over a period of 10 plus years, whether they like it not, will receive dividends. There is no choice, unlike mutual funds.
    • Dividends are not something “extra” in terms of returns/performance but do represent real profit. For an older investor, it can serve as a source of income: How to build the ideal retirement portfolio
  7. Peaceful sleep is the best form of realised gains: hence the importance to business health, low volatility, reasonable momentum (not all stocks in my portfolio will check all these boxes).

Related videos

I update the portfolio monthly on Youtube:


Build a complete financial plan with our Robo Advisory Tool. More than 1000 investors and financial advisors use it!
Get free money management solutions delivered to your mailbox! Subscribe to get posts via email! (Subscribers get exclusive discounts!)


New Tool! => Track your mutual funds and stocks investments with this Google Sheet!

Tools used

simplywall.st  I use their paid investor plan to use their screener and unlimited reports but the free plan may suffice for many. The site has a simple, easy to understand snowflake depiction of stock health, dividends, valuation, past profits and future projections. This is their GitHub stock analysis page

simplywallst stock analysis snowflake explanation
simplywallst stock analysis snowflake explanation. Source: How scores are plotted in the Snowflake?

An overview of the snowflake chart of my portfolio is shown below. All of them have good health; some with a good past; some with a good dividend record etc.

My stock portfolio analysis total return 22.58 percent up to dec 2020
My stock portfolio analysis total return 22.58 per cent up to Dec 2020

Portfolio Returns

The current weight, average holding age in years and the total return (absolute return including dividends) is tabulated below.

TotalAvg YearsTotal ReturnWeight
HINDUNILVR1.57533%18.96%
ASIANPAINT0.5936.25%17.25%
TCS0.3113.23%13.50%
HDFCBANK1.58108%11.13%
INFY0.422.85%9.96%
PIDILITIND0.5719.60%9.80%
DABUR1.219%8.68%
COLPAL1.98541%5.25%
ITC0.646.45%3.98%
MARICO0.6511.61%1.18%
WIPRO1.1936.87%0.31%
COALINDIA1.24-25.55%Sold
GODREJCP0.94-4.50%Sold
HINDPETRO1.46-14.66%Sold
IOC1.11-26.50%Sold
VEDL1.5-19.16%Sold

Overall performance

The average portfolio age is only 0.71 years. This means the CAGR mentioned below is merely eye candy. The dividend returns are before tax.

Total ReturnCAGR
From CG21.40%31.55%
Dividends1.17%1.80%
Total22.58%33.35%
Avg Years0.71 years

These numbers are expected to sharply come down as the portfolio ages. I view this stock portfolio as a form of low volatility index investing.

Do share this article with your friends using the buttons below.

Use our Robo-advisory Excel Tool for a start-to-finish financial plan! More than 1000 investors and advisors use this!
  • Follow us on Google News.
  • Do you have a comment about the above article? Reach out to us on Twitter: @freefincal or @pattufreefincal
  • Join our YouTube Community and explore more than 1000 videos!
  • Have a question? Subscribe to our newsletter with this form.
  • Hit 'reply' to any email from us! We do not offer personalized investment advice. We can write a detailed article without mentioning your name if you have a generic question.

Get free money management solutions delivered to your mailbox! Subscribe to get posts via email! (Subscribers get exclusive discounts!)
 
Explore the site! Search among our 2000+ articles for information and insight!

About The Author

Pattabiraman editor freefincalDr M. Pattabiraman(PhD) is the founder, managing editor and primary author of freefincal. He is an associate professor at the Indian Institute of Technology, Madras. He has over nine years of experience publishing news analysis, research and financial product development. Connect with him via Twitter or Linkedin or YouTube. Pattabiraman has co-authored three print books: (1) You can be rich too with goal-based investing (CNBC TV18) for DIY investors. (2) Gamechanger for young earners. (3) Chinchu Gets a Superpower! for kids. He has also written seven other free e-books on various money management topics. He is a patron and co-founder of “Fee-only India,” an organisation for promoting unbiased, commission-free investment advice.
  Our flagship course! Learn to manage your portfolio like a pro to achieve your goals regardless of market conditions! More than 3000 investors and advisors are part of our exclusive community! Get clarity on how to plan for your goals and achieve the necessary corpus no matter what the market condition is!! Watch the first lecture for free!  One-time payment! No recurring fees! Life-long access to videos! Reduce fear, uncertainty and doubt while investing! Learn how to plan for your goals before and after retirement with confidence.
Our new course!  Increase your income by getting people to pay for your skills! More than 700 salaried employees, entrepreneurs and financial advisors are part of our exclusive community! Learn how to get people to pay for your skills! Whether you are a professional or small business owner who wants more clients via online visibility or a salaried person wanting a side income or passive income, we will show you how to achieve this by showcasing your skills and building a community that trusts you and pays you! (watch 1st lecture for free). One-time payment! No recurring fees! Life-long access to videos!   
Our new book for kids: “Chinchu gets a superpower!” is now available!
Both boy and girl version covers of Chinchu gets a superpower
Both boy and girl version covers of Chinchu gets a superpower.
Most investor problems can be traced to a lack of informed decision-making. We have all made bad decisions and money mistakes when we started earning and spent years undoing these mistakes. Why should our children go through the same pain? What is this book about? As parents, what would it be if we had to groom one ability in our children that is key not only to money management and investing but to any aspect of life? My answer: Sound Decision Making. So in this book, we meet Chinchu, who is about to turn 10. What he wants for his birthday and how his parents plan for it and teach him several key ideas of decision making and money management is the narrative. What readers say!
Feedback from a young reader after reading Chinchu gets a Superpower (small version)
Feedback from a young reader after reading Chinchu gets a Superpower!
Must-read book even for adults! This is something that every parent should teach their kids right from their young age. The importance of money management and decision making based on their wants and needs. Very nicely written in simple terms. - Arun.
Buy the book: Chinchu gets a superpower for your child!
How to profit from content writing: Our new ebook for those interested in getting side income via content writing. It is available at a 50% discount for Rs. 500 only!
Want to check if the market is overvalued or undervalued? Use our market valuation tool (it will work with any index!), or you buy the new Tactical Buy/Sell timing tool!
We publish monthly mutual fund screeners and momentum, low volatility stock screeners.
About freefincal & its content policy Freefincal is a News Media Organization dedicated to providing original analysis, reports, reviews and insights on mutual funds, stocks, investing, retirement and personal finance developments. We do so without conflict of interest and bias. Follow us on Google News. Freefincal serves more than three million readers a year (5 million page views) with articles based only on factual information and detailed analysis by its authors. All statements made will be verified from credible and knowledgeable sources before publication. Freefincal does not publish any paid articles, promotions, PR, satire or opinions without data. All opinions presented will only be inferences backed by verifiable, reproducible evidence/data. Contact information: letters {at} freefincal {dot} com (sponsored posts or paid collaborations will not be entertained)
Connect with us on social media
Our publications

You Can Be Rich Too with Goal-Based Investing

You can be rich too with goal based investingPublished by CNBC TV18, this book is meant to help you ask the right questions and seek the correct answers, and since it comes with nine online calculators, you can also create custom solutions for your lifestyle! Get it now.
Gamechanger: Forget Startups, Join Corporate & Still Live the Rich Life You Want Gamechanger: Forget Start-ups, Join Corporate and Still Live the Rich Life you wantThis book is meant for young earners to get their basics right from day one! It will also help you travel to exotic places at a low cost! Get it or gift it to a young earner.

Your Ultimate Guide to Travel

Travel-Training-Kit-Cover-new This is an in-depth dive analysis into vacation planning, finding cheap flights, budget accommodation, what to do when travelling, and how travelling slowly is better financially and psychologically with links to the web pages and hand-holding at every step. Get the pdf for Rs 199 (instant download)