You will realize that giving out 3 names will still not be easy. Stocks which do well over a 2 year period may not perform well over a 5 year period and vice versa. The idea of having a long term investment plan itself could prove to be futile unless it is implemented with some idea of what long term means to you?
A couple of days back I was working with a list of large-cap companies. The intention was to make a list and then screen it on value-parameters (– see my next post below) to find out if there were growth opportunities for my surplus funds which I won’t need for a few years. Even before I started screening, I found an interesting trend. Most of the large-caps had given good positive returns over the last many years. To the point, that if I were to choose any 2 dates, 3 years apart from each other, in ALMOST ALL CASES, the stock had given a handsome return, mostly well in excess of 10% annualized return.
Despite the fact that the last few years have been the slowest years for equity markets, with most of the world slowly coming out of a recession and earnings growth at their lowest levels, and even in an environment of high inflation and interest rates, near zero reforms, a majority of these companies have not only given (get ready for this) – extremely high returns, but have infact proved to be the best place to invest money in India over the last few years. Of course this sounds unbelievable. Believe me; I am not making anything up here. The facts as represented by the table above and the charts below, speak for themselves.
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