Synopsis
There are sectors where even the top firms have single-digit margins (or, at best, in very low double-digits). But stocks from these sectors have also created big wealth. The reason: The overall market size is so big that even small but stable margins can deliver a high return on equity and create wealth. So, before zeroing in on any stock, look at the overall size of the business. The chances of finding a wealth-creator stock increases manifold if the sector is on a growth path. The reason could be as simple as that it fulfills a basic need, or as complex as change in technology leading to a transformation of the sector.
Long-term investment decisions cannot be based on what the Nifty or Sensex do every week, or even every month. So, if you are in the habit of looking at the indices every evening, then these stocks are not for you. Do you remember the very strong and widespread correction that happened in the first quarter of 2023? At the time of the Adani-Hindenburg episode? Probably not. That is the precise reason why you should not look at the Nifty and
- FONT SIZE
AbcSmall
AbcMedium
AbcLarge
Uh-oh! This is an exclusive story available for selected readers only.
Worry not. Youβre just a step away.
Whatβs Included with
1Invest Wisely With Smart Market Tools & Investment Ideas
Investment Ideas
Grow your wealth with stock ideas & sectoral trends.
Stock Reports Plus
Buy low & sell high with access to Stock Score, Upside potential & more.
BigBull Porfolio
Get to know where the market bulls are investing to identify the right stocks.
Stock Analyzer
Check the score based on the company’s fundamentals, solvency, growth, risk & ownership to decide the right stocks.
Market Mood
Analyze the market sentiments & identify the trend reversal for strategic decisions.
Stock Talk Live at 9 AM Daily
Ask your stock queries & get assured replies by ET appointed, SEBI registered experts.
2Stay informed anytime, anywhere with ET ePaper
ePaper – Print View
Read the PDF version of ET newspaper. Download & access it offline anytime.
ePaper – Digital View
Read your daily newspaper in Digital View & get it delivered to your inbox everyday.
Wealth Edition
Manage your money efficiently with this weekly money management guide.
3Exclusive Insights That Matter
4Times Of India Subscription (1 Year)
TOI ePaper
Read the PDF version of TOI newspaper. Download & access it offline anytime.
Deep Explainers
Explore the In-depth explanation of complex topics for everyday life decisions.
Health+ Stories
Get fitter with daily health insights committed to your well-being.
Personal Finance+ Stories
Manage your wealth better with in-depth insights & updates on finance.
New York Times Exclusives
Stay globally informed with exclusive story from New York Times.
5Enjoy Complimentary Subscriptions From Top Brands
TimesPrime Subscription
Access 20+ premium subscriptions like Spotify, Youtube & more.
Docubay Subscription
Stream new documentaries from all across the world every day.
6Get Inspired by Grandmasters
Source link
