As bulls make a comeback, stay with stocks that are best in their class: 5 large-caps with an upside potential of up to 33%
Here’s a question. Which of the following companies is better to invest in at a time of high valuations? First: A wealth-creator that has been around for over two decades; an industry leader with a management that has dealt with many economic slowdowns and has still emerged a winner. Second: A company that issued its IPO in the last few years; whose valuations are high because it is currently the flavour of the street. And whose management has no experience of dealing with downturns. The answer: Obviously, the first. The reality, however, is that most investors ignore the first lot and go for companies that make headlines and a lot of noise, quite forgetting the basics of investing.
Here’s a question. Which of the following companies is better to invest in at a time of high valuations? First: A wealth-creator that has been around for over two decades; an industry leader with a management that has dealt with many economic slowdowns and has still emerged a winner. Second: A company that issued its IPO in the last few years; whose valuations are high because it is currently the flavour of the street. And whose management has no experience of dealing with downturns. The answer: Obviously, the first. The reality, however, is that most investors ignore the first lot and go for companies that make headlines and a lot of noise, quite forgetting the basics of investing.
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