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The High Priced Stock Portfolio

If you’re scared of buying a stock that is priced above Rs. 10,000 – this portfolio might ease your worries. It only has stocks that are extremely high in the price per share!

This doesn’t make the stock expensive. If you divide the same profit among a lesser number of shares, the price per share goes up. You could in fact have a Rs. 15,000 share price that’s at an earnings-multiple of 10x, which a Rs. 300 stock could be a multiple of 50x. A lower earnings multiple is effectively the number of years of profit you pay per share – so the former, even at Rs. 15,000, is a cheaper share.

The high value per share scares away the small retail investor. Which would mean such stocks are in relatively stronger hands.

We tested that philosophy in 2017 and found it extremely interesting. (Read the post) The strategy, back-tested, had a nearly 2x return of the Nifty! We decided to suggest a portfolio for the subsequent years.

In 2018, the suggested high price portfolio did a 33% return (Read the post). We then adjusted the portfolio – remember, most expensive stocks only.

In 2019, the portfolio had seen a 2% LOSS which was relatively better than the Nifty. (Read the post)

The latest portfolio, started in 2019, is here: