These Stocks Are Driving Me Crazy!
Will patience be fruitful?
Quick profits are tempting!
By the way, I made a 20% return on my silver investment in less than two months. I partially booked profits on my silver investments - though I planned to hold long. But 20% in two months translates to 120% annualized returns…tempting…right? I will share more on this exit and my new buys in the next newsletter. So, if you have not subscribed, please do NOW.
Coming back to the main topic - stocks that are driving me crazy.
Patience is a crucial virtue in investing, especially when it comes to holding quality stocks. I have been holding some quality stocks but for one or the other reasons, I have hardly made any profits on them.
In this newsletter, I am going to put forward only numbers in front of you to show that sometimes being patient gets really difficult but you should hold on...
Stock 1: Asian Paints
I took entry in this stock in 2021 and for 3+ years my net returns are
There is nothing major wrong with the company. Yes, the evaluations were high when I invested but the sales numbers are still good. Below is the compounded growth profit:
Stock 2: Bajaj Finance
Another excellent company whose profit/revenue numbers have done well. Yes, there is some fear of Jio Finance impacting its business but a 30.78% return for a company that has doubled its profits since I invested in it in August 2020. Here is the valuations - sooner or later more investors will notice it.
The PE was this low back in July 2015 (ignoring the 2020 crash). So, the price can only go up from the current levels.
Stock 3: HDFC Bank
I am sure everyone has this stock in their portfolio. Luckily, I invested it during covid crash at rock bottom so I see decent returns on this but still below average. Same story here too - the topline and bottomline numbers are excellent. I will not talk more about this one as so much is already being said on so many platforms.
But this is definitely testing everyone’s patience.
Fun Fact - This has the highest allocation in my holder.
"An investor should be prepared to hold a stock for five years, or even ten, if he believes in the soundness of the business and in the integrity of its management."
Stock 4: Kotak Bank
I have been holding this share for 2 years now with zero returns. In the five-year period, the returns are less than fixed deposits.
Below are sales and margin numbers for the same period. Profit has more than doubled in this period. There is no reason to sell the stock. Brokerage houses are giving high targets for the bank.
I will continue to hold all these stocks
I don’t see a reason to exit any of these holdings. But, to be honest, these investments are testing my patience. I don’t know if patience will reward me in the end or not but as of now, the odds of the tide turning for these stocks are super high (not investment advice).
Why Patience is Crucial
Time is Your Ally: Investing is a long-term game. Quality stocks often take time to appreciate in value. Patience allows you to ride out market fluctuations and reap the rewards of long-term compounding.
Avoiding Emotional Pitfalls: Market volatility can trigger emotional reactions, leading you to panic and sell your investments at a loss/less profits. Patience helps you stay disciplined and avoid impulsive decisions.
Focusing on Fundamentals: When you're patient, you can focus on the company’s underlying fundamentals, such as its financial health, management quality, and growth prospects. This helps you make informed investment decisions.
Let me know in the comments which of these stocks you hold in your portfolio.
If you like my investment journey through the newsletter, please share it around so I can reach a wider audience. Your small gesture of putting the newsletter as status on WA will surely bring in more readers and encouragement.
Read - NINTH WONDER of the WORLD
About me - In the last few years, I have noticed that many investors struggle with basic investment concepts. To address this, I have started a personalized newsletter offering easy-to-understand, actionable insights to help investors make better decisions. I have written over 5000+ financial blogs and want to share my knowledge and investing journey with you so you can become a confident investor. Join my journey. SUBSCRIBE NOW.
Time is Your Ally: Investing is a long-term game.
Above statement is true but we need to exit from stock if there fundamentals are not moving upward direction for long time. That is based on my experience of DLF stock.