Buy these 5 types of stocks to build a balanced Portfolio | Akshat Shrivastava

Summary

In this video, the speaker discusses five types of stocks in their portfolio, including high-growth 5X stocks, 2X stocks through sector rotation, opportunistic swing stocks, high-risk SME IPOs, and international hedges. They share insights on identifying potential multibagger stocks, the importance of a consolidation period, and the role of macroeconomics in portfolio design. The speaker also emphasizes the value of a four-day workshop for learning stock investing and portfolio building.

Takeaways

• 😀 The speaker discusses five types of stocks in their portfolio, focusing on high-growth potential stocks.
• 📈 The '5X type of stocks' are those with the potential to increase 5 times in value within 3-5 years, but a more practical target is around 2-2.5 times.
• 💹 The speaker shares their experience with the small cap 250 index, highlighting a 90% gain and a 114% return in the last year.
• 📊 The importance of analyzing a stock's historical performance, including periods of stagnation and growth, is emphasized for identifying potential multibagger stocks.
• 🎬 The example of PVR Inox is used to illustrate a stock that has not increased in value for years but has potential for significant growth due to industry recovery and business model resilience.
• 🔄 '2X type of stocks' are identified through understanding sector rotation, where different sectors perform well at different times, such as IT stocks during the COVID-19 pandemic.
• 💼 The concept of 'swing stocks' is introduced, which are opportunistic plays based on market sentiment and news, like the case of Tata Elxsi.
• 🚀 SME IPO stocks or unlisted stocks are considered high risk but can offer high rewards, suitable for a portion of a diversified portfolio.
• 🌐 The speaker suggests that investors with a larger portfolio consider international exposure and hedges to protect against currency fluctuations and economic risks.
• 💡 The video concludes with a call to action for viewers to join the speaker's workshops for in-depth learning on portfolio building and stock investing.

Q & A

What are the five types of stocks the speaker is currently holding in their portfolio?

The speaker is holding 5X type of stocks, 2X type of stocks, swing stocks, SME IPO stocks, and hedges in their portfolio.

What is the definition of 5X type of stocks according to the speaker?

5X type of stocks are those where the speaker sees the potential for the stock price to increase by five times in the next 3-5 years.

How has the speaker's mutual fund portfolio performed historically?

The speaker's mutual fund portfolio has performed exceptionally well, beating more than 95% of actively managed mutual funds.

What is the significance of the speaker's investment in the small cap 250 index?

The speaker's investment in the small cap 250 index has resulted in significant gains, demonstrating their ability to identify high-potential investment opportunities.

What is the concept of sector rotation as mentioned by the speaker?

Sector rotation refers to the strategy of investing in different sectors of the economy that are expected to perform well at different times, based on market trends and economic cycles.

Why does the speaker consider PVR Inox as a potential 2X to 5X stock?

The speaker considers PVR Inox as a potential 2X to 5X stock because despite the company's revenues doubling, the stock price has remained stagnant, and the speaker believes it is undervalued.

What is the role of swing stocks in the speaker's portfolio?

Swing stocks are opportunistic investments that the speaker uses to capitalize on short-term market movements or undervalued stocks, aiming for quick gains.

Why does the speaker invest in SME IPO stocks and what is the associated risk?

The speaker invests in SME IPO stocks for high-risk, high-reward opportunities. These stocks are considered high risk due to the volatility and uncertainty associated with newly listed small and medium-sized enterprises.

What does the speaker mean by 'hedges' in the context of portfolio management?

Hedges in the speaker's portfolio refer to investments that are intended to protect against potential losses in other parts of the portfolio, such as international equities or bonds, which can provide stability and diversification.

What advice does the speaker give for investors with a portfolio size of less than 10 lakhs?

The speaker advises investors with a portfolio size of less than 10 lakhs to first grow their portfolio by investing in high-growth assets before considering more complex strategies like hedging.

What is the speaker's approach to portfolio building and wealth generation?

The speaker's approach to portfolio building and wealth generation involves a mix of high-growth potential stocks, sector rotation strategies, opportunistic investments, high-risk investments in SME IPOs, and hedging with international assets.