I was recently asked to for a copy of the tracking sheet I mentioned in an earlier post. I have uploaded it in the google groups (see here). It is a very simple tracking sheet with intrinsic value for each stock noted in the sheet to prevent me from focussing too much on the current price or cost.
A few key points on how I use the tracking sheet
- I regularly compare the current price with my estimate of intrinsic value (column B). If the discount (column F) is 30% or more and I have confident about the company, I will add to the holding. Conversly if the stock sells above the intrinsic value, I will start selling.
- I tend to check the quarterly and annual reports to see if there are any reasons for me to update the intrinsic value of the company (for better or worse).
- My focus is to ensure that current value of the portfolio (B19) is at a discount of 30% or higher from the total intrinsic value (B18). This ensures that I am selling overvalued stocks and looking for or buying undervalued ideas. The idea is to ensure that the portfolio does well and there is an upside in the form of undervaluation.
- I also have dividend for each stock on the spreadsheet. I am not too focussed on it, though I like to track the value for each stock and for the portfolio as a whole.
I use the above spreadsheet to drive my buy/ sell or hold decisions and to anchor my thinking to the intrinsic value, rather than the cost or current price. As you can see, there is nothing fancy about the spreadsheet, its as dumb as it can get.
Disclaimer : Please do not read too much into the stocks listed on the spreadsheet. The above list may not be a true representation of my current holdings.