Building a successful stock investment portfolio with 10 stocks

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In this article, I am sharing a unique idea of building a successful stock investment portfolio with 10 stocks by just investing into only 10 companies. This is wholly my idea and I have successfully implemented and managing my portfolio with great success.

This is specifically good for investing for children at their early age of 5 to 10.

Building an investment portfolio

In this specially created investment portfolio model, I have a small portfolio of 10 shares each from 10 successful companies in India.

Advantages of Stock Portfolio

1. I bought 10 shares of each company time to time that have not given much fund burden to buy..
2. It helped me to take time to accumulate one by one
3. I have a portfolio with 10 fantastic stocks. Each has 10 numbers and thus 100 shares.
4. It is a brand new idea I have identified and implemented and that gave me required yield
5. As these companies have excellent business,  there is no need to worry if the buying prices is bit more.
6. Perfect protection – There is no chance for these stocks to fail but if one or two fails, the others will compensate the loss.
7. It is an extra-ordinary fit for beginner investors focusing a small investment portfolio for children.

What all are the best companies in my 10 stock investment portfolio?

Selection of shares in such stock portfolio required extreme attention and study. I have selected the best companies in the market when it come to the reasonable price to buy. Here is the shares in my 10 stocks portfolio.

Pidilite (10 nos)
Crisil (10 nos)
HUL (10 nos)
HDFC (10 nos)
Colgate (10 nos)
CDSL (10 nos)
BSE Limited (10 nos)
Gillette India (10 nos)
Asian paints (10 nos)
Titan Industries (10 nos)

Reasons for investing in stocks of best companies

1. All of them are either blue chips of growing mid-cap stocks as a blue-chip in future
2. All of them giving decent dividends regularly
3. These companies have one or more monopoly products in India
4. Excellent management, free cash flow, Sales and Profit Growth, EPS/ROE/ROcE growth, high inventory turnover, no or low debt. All these advantages making these companies more stable and lucrative.
5. These businesses will survive for more than next 20 years.

Why I created such a small stock investment portfolio

1. It is highly manageable with correct number of stocks
2. These stocks giving returns regularly in the form of dividend and bonuses
3. There is no chance for collapse as these are market leaders
4. Diversification is excellent. Just see the stocks and it’s sectors. This portfolio have included stocks from  consumer, banking, finance, chemicals, manufacturing, FMCG, Services etc.
5. A long time focused portfolio with these stocks are enough to meet goal and the wealth will increase to high extend.

Next, I am planning to make a portfolio of mid-cap stocks with 20 numbers each and from 10 companies. I have already few are in my bucket during the Covid-19 related stock market down and hunting to the next one.