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Who says that you cannot make money on stock markets just because the sensex remains sluggish?? Irrespective of whether the market sentiments are good or bad, it has been proven numerous times that some stocks yield awesome returns. Why? Because those companies could have delivered consistently good results for last several quarters. Because those companies could be into rock solid businesses where we can reasonably estimate above average growth for next many quarters. Because those companies could have built a solid brand value or a solid logistic or manufacturing infrastructure which makes it a deterrent for a new entrant. Because the company's products could command a higher premium in the market. Because the company could have much more avenues for growth in the market it operates or there could exist opportunities for expansions into other geographies. because those companies could be managed by team who have excelled in past. There could be many more reasons.
Value Investing is more of an art than science. Beyond the analysis of financial statements which reflects past performance, it requires the conviction of estimating future growth. Many times mere past performance may not reflect what is in store for future. Predicting stocks which could shoot up three to five fold in next few years is not an element of chance. It is a detailed study of the business of the company, anticipated growth with logical reasoning, study of cost effectiveness, capabilities of management to drive business, analysis of Government policies and anticipated trends which could effect performance of the company, existing and anticipated competition, risks of product substitutes, technology dependence and scores of other factors.
In this presentation, I share a list of companies which performed well in the course of last 1, 3 and 5 year horizon. The showcased companies even 5, 3 or 1 year back were fundamentally strong, leaders in their respective fields, and there existed high probabilities for their outstanding business growth. If you have invested into stock market directly or through a mutual fund, did you make great returns? If not, you need to introspect as to why did you miss such wonderful companies.
World over medium to large investors invest through Authorized Portfolio Managers because they have the requisite tools and expertise to manage their investments better. In India, Portfolio Managers needs to be registered with Securities & Exchange Board of India [SEBI]
Disclaimer: This presentation is meant for general reading purpose only and is not meant to serve as a professional guide or recommendations for readers. This document has been prepared based on publicly available information, internally developed data and other sources believed to by reliable. The management or employees of Munoth Financial Services Limited does not assume any responsibility for, or warrant the accuracy, completeness, adequacy or reliability of such information.