August 28, 2009

Tracking sheet

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.

10 comments:

Mitran said...

The picture is not legible to read. could put in good clarity.

Anthony Mallgren said...

I'm curious as to what your valuation for the intrinsic value of Brinx Resources (BNXR) is. Could you please apply your valuation skills to this equity if you find the time to do so?

Rohit Chauhan said...

Hi mitran
i have that issue with blogger which i am not able to fix. you can also access this file on the google group. use the link 'download' on the side bar to access the google group
rgds
rohit

Vic said...

Hi Rohit,

Thanks much for the spreadsheet, I like the simplicity..:-) typical of your style..which is a Real Beauty!!

What does "Probability of outperformance" mean? Is it the outperforming of Intrinsic Value?

Thanks,

Vikas

Rohit Chauhan said...

hi vic

simple or dumb :) ?

probability of outperformance is my confidence that the company will do well and the chances of the gap closing is high

regards
rohit

pocho said...

Thank you Sir

gjain said...

Hi Rohit

I am a newbie in investing and fortunately have no experience in trading (feel fortunate here after reading half of Benjamin Graham's book)

I want to practice researching stocks on my own, busing the concepts/ideas from Graham and good blogs like yours.

My problem is that I am not able to find a good data source for 1st step i.e. stock screening. For example, i want to download list of stocks and their information (and their data) using some criteria like PE < 10, MCap > 1000 Crores, Price/Book < 2, DE < 1 (or some other combination)

Regards
Gaurav

sumi said...

Hi rohit,

It is seriously a great thing to upload all your hard work for the public and to allow everyone to comment on it. I mean it is such a great base to have a tracking sheet from a value investor to make your own comparisons and also discover so many companies.

Rohit Chauhan said...

Hi gjain
try the icici direct website. i think they have some of the filters you are looking for. the rest you may have to do it manually in a spreadsheet

sumi - appreciate you comment

Rajesh said...

hi rohit,
what are your views on opto circuit fundamentally and their management with a recent buyback and now on their QIP also your views on sintex industries.

Rgds
Rajesh