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Sunday 8 September 2013

Long Term Investment Portfolio from Technical Analysis Simplified

One of the questions many of my readers and friends ask is about long term investment.

Which stocks to invest for long term ?

Markets crashed – which stocks to buy now ?

When is the right time to buy ?

We encounter these questions almost every day and every fall. There is no right or wrong answer to this, since investment has many different flavors ranging from systematic investment, investing on dips, long term technical analysis and so on.

Nevertheless, my views based on what we have seen over past 10 years.

1. Buy only blue chip stocks for long term.
2. I am not a great fan of mid-cap stocks since volatility could be very high. Nevertheless we can include 1 or 2 high quality mid caps to give a punch to our portfolio.
3. Do not invest in multi-baggers. It is true that there could be several stocks which could give you 20 times returns  in 10 years, but it is hard to find them.
4. Diversify your portfolio into different sectors.
5. Good quality stocks may be bought whenever Nifty reaches 4800-5200 mark. We can also buy ETFs -  Nifty Junior and Nifty BEES and Banking BEES.

Below is the long term portfolio one could look at if the investment time frame is 3 years +. I have created this portfolio for 2 lakh Rupees.  These are the stocks which you should accumulate in every fall.

Please do not look at this portfolio on weekly basis and panic about short term losses. Invest only if you have patience and money to hold for 2-3 years. I will review this portfolio on monthly basis and suggest necessary re-allocations if required.

The above recommendations are NOT based on Technical Analysis. The recommendations are made based on the current value of the stocks and the quality of the business and potential to generate good returns over few years. The author is in no way recommending readers to invest in these stocks or will not be responsible for any losses resulting from investing in these stocks.


Hey, thanks for the information. your post s are informative and useful.
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