Majority of investors make buying or selling decision in a haste which causes them to settle down with less profit or even loss sometimes.
There are few stocks which have always added wealth for its all investors. Whether you have bought a stock 10 years ago or 1 year ago. Short-term investments like less than 1 year are very much volatile and usually erode investor’s money.
Have a look on 5-year stock charts of some companies
1. Eicher Motors Ltd
2. Shree Cement Ltd
3. MRF Ltd
4. Avanti Feeds
All these companies have performed well and have been multibaggers in the last 5 years. There has been a constant demand for these companies stocks in the market. Do not get amazed if your broker still recommends any one of these stocks for long-term holding. Most of these have been companies are consistently posting growing results thereby showing improving profits and business stability.
But wait, this is only the bright side of the picture. Have a look at these company’s stock charts.
The dark side of Picture
1. Reliance Communication
2. Sun Pharmaceuticals
In both of these companies, if an investor would have invested his money when the companies were at the highest price, this would have been definitely eroded money. There are a lot of examples of such companies.
Most of such companies failed to deliver results according to the investor’s expectations. For example, RCOM has nearly 40,000 Crores of debt which reflected a very bad image among investors.
Let me share the secret to create wealth. If anyone wants to create wealth find a company whose business is emerging and performing reasonably good. Stay invested in the company until fundamentals do not change. When the company’s business improves and performs better then its stock price automatically follows it.
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