Darwin Portfolio – How Charles Darwin Can Help Build a Stock Portfolio

Darwin Portfolio

A post on Charles Darwin by a friend reminded me an approach I am experimenting in terms of cleaning my stock portfolio.

As I have discussed here, I am a Gardener now when it comes to investing. I find selecting and buying lot easier than selling.

For buying I have a system or at least a framework but selling lacks any systematic approach. So while reading the book Seeking Wisdom from Darwin to Charlie Munger by Peter Bevelin,I thought of taking Darwin’s help.

Now every quarter and during annual results, I assess the stocks in my portfolio using 4 variables, ROE, Cash by Net Profit, Debt to Equity and growth of each additional rupee invested.

Gather this data into this Excel sheet and then rank them. Consistent lower ranks are the ones that need to go. So Darwin’s survival of the fittest in action. I also use this sheet to evaluate a potential new stock for the portfolio.

Getting this sheet populated is simple, hard part is acting on the information it reveals. .

Here’s the excel sheet if anyone is interested.

2 thoughts on “Darwin Portfolio – How Charles Darwin Can Help Build a Stock Portfolio

  1. Pingback: A Simple Fortran code to Simulate Stochastic Stock Price Movement | SukhbinderSingh.com

  2. Pingback: Investing is easier than you think, but …. | SukhbinderSingh.com

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s