The stock markets, world wide are going through one of the worst crisis in the last 25 years. At least we have not seen such a turmoil in the Indian stock market in the las 25 years. Such market conditions are extreme and exceptional in nature and happen once in life time. Our advise to our esteemed readers is to stay invested for long term and do not panic in the short term. If you have noticed we have been recommending fundamentally strong business which have sustainable long term competitive advantage and, therefore,should be held for at least 10 years to generate wealth. Markets in the short term periods are speculative in nature but are slave of earnings in the long term periods.The scripts that we have been covering in our writings are very very strong businesses and have become more attractive after the substantial drop in prices. Full value of these business will be generated over a period spanning 5- 10 years. Therefore, we advice our readers to keep on adding these scripts in small lots or sips (SIP) or else wait for the market to stabilise at a certain level and then start buying. The problem is that the market bottoms cannot be predicted nor caught. When the markets recover they just do it in few sessions. Therefore, we recommend that the buying should be an ongoing process.
The current market conditions are a once in life time opportunity to buy quality stocks at such a throw away prices and one should not miss it. we can make a fortune after a year or so.
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Our bench mark returns of at least 26% p.a compounded over a period of at least 10 years is now over 30%-35% p.a. after the substaitial fall in markets. Any investment made now in our scripts shall generate returns of over 30-35% p.a on annual compounded basis and the returns over short terms of 1-2 years could be as high as 50-100%.
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