Simplifying Equities and why you should take a plunge at the earliest!
Forget all macro and let’s concentrate on only something where we are required to concentrate:-
1) There’s no bull or bear market this days as the cycle has shortened. Previously it would be 5 years of bull market and a bear market with same proportion of time but at present this are phases which are much frequent. It’s futile to hazard a guess and only resort is to stay put in good stocks backed by a ‘great sky is the limit’ aspiring jockey/managment team. Wherever there will be growth the market would pay a premium.
2) If you are anxious about your portfolio but posses good quality cos with solid growth ahead backed by robust pedigree,sooth your nerves by fathoming the simple thing. The country is happy to grow by 5-7% on an average, yet some companies would grow at a minimum 20-25%. A few will grow by 30-40% CAGR for next 3-5 years. That’s serious growth folks. Corona or no Corona, A lot of highly resilient companies are at inflection point and it's only a matter of time before they get catapulted to the top league.
3) When I speak to all the managements or conduct scuttlebutt on my favourite small and midcaps, its a complete different scenario. Everyone seems to be working over time. The order books are full,there’s more enquiries than ever,new employees are getting recruited,plants are being expanded-takes you to a different state of mind altogether. The idealogy remains simple,try to have that feel of lucrative business ownership and stock markets would automatically be a different place for you.
5) Avanti feeds adjusted everything moved from 7rs to 3000rs in a matter of 8 years. Nalanda capital swallowed a chunk of Page Industries during the era of 2007 at 600 bucks only to exit partly at 25000 levels. Bajaj Finance moved from 5rs to 7500 rs in the last 12 years. Enough of listening this sob stories. It’s high time you avail the bragging rights by just simply staying put in the companies you own as long as their growth story is intact. With time,they can only make you richer.
Conclusion: It fascinates me to the core, sensing so many of the gullible retailers who are happy locking their money in FDs for decades,generating absoloute post tax peanuts but refrains to give bit of time to the best wealth generation asset in the world. The good part is Me or you require nothing in lieu but just time and patience to grow richer along with all this amazing partners. The bad part remains,some of you will see,read,understand everything yet will panic and sell it to your neighbours at the least of prices only to see them getting liberated at age of 40 Vs your liberation at grandpa age of 60. You want to be in which boat-I leave that choice to you peeps.Happy investing
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