Skip to main content

Multibagger formula: Consensus cannot make big money

Multibagger formula: Consensus cannot make big money, sticking the neck out can

Herd mentality is to human behavior what sand is to desert. On Dalal Street, it means going with the tide, the consensus.

But the market pays only when you use brains; that is, when you go stock picking with conviction, based on proper research.


If you are not doing this, you might just be sending some hard-earned money down the drain. This is what gives birth to scams like Speak Asia and Social Trade.

However, the stock market is neither Speak Asia nor Social Trade; it is a place where you can use smartness to beat inflation and compound your wealth. And how!

The headline ‘Multibagger formula’ must have forced you to click on this article. But before going ahead, you must be aware that making money is never ‘easy’.


History suggests money can be made only with proper research and hard work. Only then, can one find multibaggers like SymphonyBSE 1.62 %, Ajanta PharmaBSE -0.25 %, Escorts, MRF and NilkamalBSE -0.86 %.


Consider this: equity benchmark BSE Sensex has given 127 per cent return in last 10 years, even as the broader market produced stocks like Symphony, Ajanta Pharma, Caplin Point LabBSE 0.18 %, Vinati OrganicsBSE 2.22 % and RelaxoBSE 1.40 % Footwear, which gave over 10,000 per cent return to investors in the same period.


Still, one should not get lured by these figures. Ace investors such as Rakesh Jhunjhunwala and RK Damani were not made in a day. They picked stocks after due diligence.


In an interview with ETNow, Sanjay Dutt, Director, Quantum Securities, said, “Consensus never makes money. At the most, consensus makes a 12-14 per cent kind of return. But if you stick your neck out and do homework, it gets you to the multibagger. You will never make money by listening to television channels or reading newspapers. You need to really get down to doing hard work to find those multibaggers and do not get swayed by consensus.”

On spotting multibaggers in the present market scenario, Gautam Trivedi, CEO, Religare Capital Markets, told ETNow: “We see a lot of opportunities in the midcap space and the universe still has very attractive stocks to choose and pick from.”

Arun Thukral, Managing Director and Chief Executive Officer, Axis Securities, in a column wrote, “Multibaggers are stocks that evolve gradually; they will not give returns immediately, when you invest in them. A structurally strong company with good management and future strategy can potentially evolve into a multibagger over time.”

The list of top 25 stocks that surged over 3,500 per cent in 10 years:


Comments

Popular posts from this blog

Wipro Q1 beats estimates but Q2 dollar revenue guidance disappoints; to buyback 7% equity

The company reported revenue of Rs 13,025.6 crore against a CNBC-TV18 poll of analysts who pegged this figure to be Rs 12,828 crore. IT administrations major Wipro on Thursday announced a fall of a little more than 8 percent fall quarter-on-quarter (QoQ) for April-June period at Rs 2,077 crore. The organization detailed income of Rs 13,025.6 crore against a CNBC-TV18 survey of investigators who pegged this figure to be Rs 12,828 crore. The income before intrigue and tax assessment (EBIT) edge came in at 16.8 percent, higher than the gauge of 16.5 percent. The organization detailed a dollar income of USD 1971.7 million, a smidgen higher than the survey of USD 1,948 million. The organization's direction, be that as it may, came in lower than what the Street had represented. It expects income from IT administrations business to be in the scope of USD 1962-2001. It likewise expects dollar income development for the second quarter to be in the scope of - 0.5-1.5 percent. ...

US govt's delay on "startup visa" could hit Indian immigrants

The move is going to be detrimental to the Indian I-T sector Following stricter regulations on work visa rules for the coveted H1-B visa, the United States Citizenship and Immigration Services announced a delay in the “startup” visa program on Monday in the US. An  Economic Times  report  states  that before the announcement of the delay, the visa program was given the nod by former US president Barack Obama, and was slated to be released on July 17 this year. The move is going to be detrimental to the Indian I-T sector. According to the visa guidelines, entrepreneurs can stay stateside with a renewable 30-month visa. Foreign nationals, who had begun ventures in the United States, were eligible for the visas if they received USD 100,000 in government grants or USD 250,000 in a venture capital investments. However, the United States Citizenship and Immigration Services said that the Obama-era regulation had no basis in law. Obama’s main inten...

Stocks that surged up to 10% today

Overall, market sentiment was buoyed after the rollout of the goods and service tax (GST) from July 1. Benchmark Nifty50 index was 84 points up at 9,604, while the 30-share Sensex was 287 points up at 31,208 around 1 pm (IST). On the NSE, 52 securities, including Aditya Birla Nuvo, Asian Granito, Bhansali Engineering Polymers, Aditya Birla Money and Colgate Palmolive (India) hit their fresh 52-week high. In the Nifty50 pack, 35 stocks were trading in green, while 16 stocks were in red. You May Also like:    Aditya Birla Financial Shares of RattanIndia Power (up 9.55 per cent), ITC (up 5.99 per cent), Ashok Leyland(up 5.75 per cent), Raymond (up 5.15 per cent) and Dilip Buildcon (up 5.01 per cent) were among the stocks that surged over 5 per cent on BSE in Monday's trade. However, Accel Frontline, Central Depository Services (India), Coal Indiaand DQ Entertainment (International) were among 28 securities that hit fresh 52-week low.