The latest one year bull run not happen very often. I call it a - mad "bull surge" rally.
How ever there are chances of this happening a couple of times every decade. And if you are well positioned for such a phenomenon; the benefits in a very short period of time can be enormous.
SOME OBSERVATIONS ABOUT MAKING MULTIBAGGING PROFITS / GAIN
A. Time
By now it must be quite obvious that, one of the most important aspect to make multibagging profits is TIME. That time in definable terms is "few years". It could be 2, 3, 4 years. In rare cases you could get your rewards in a matter of few months.
So the learning is, after you buy/add/accumulate a stock
B. Selection
Stock
My definition of a good quality company: A company with a good quality product / service, with a visible demand (requirement) of the service / product over the next 2, 4, 5 years; honest / trustworthy promoters, capable management, decent processes; adequate communication with investors, transparent and understandable financial
A good website, a past track record, a consistent dividend policy, a good/reliable brand; would be nice to have.
C. Price
At what price you buy a stock
Thumb rule is simple: Buy the stock
Remember, there is a difference in a stock being "just cheap" and "being undervalued"
D. Appropriate Action
"Buy low" and "Sell high" are the only 2 actions needed, after identification of a stock is done. These 2 simple actions will ensure that you profit from your stocks
E. Conviction and Patience
As time is an essential aspect of a multibagger journey, it is important that your conviction in the company behind the stock much be VERY HIGH.
Market corrections from time to time and sometimes, even market crashes are a reality of the stock markets
Conviction is what really helps people to "accept the pain" and ride through the rough waters without selling their stocks.
Wish and Hope that more and more people learn how to make "multibagging profits" from potential multibaggers.
All the best!!
Sign off note:
Prime Minister Narendra Modi speech at the Madison Square gardens in New York yesterday, was easily the most inspiring speech by an indian leader of our times.
Wish you all a wonderful and multibagging journey in the years ahead. Cheers!!
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