There are round about 5000 companies listed on bombay stock exchange. Out of these round about 4500 are crap. They are no, rather big NO….
Now the left 500 are not all great. There would 300 that would be average. And then there would be about 100 which have excellent managments which make them decent companies. They could be low cost providers, some in cyclical industries, some whose promoters increase shareholders value by share buyback, dividends, by acquiring other companies at discount.
The 100 left would would be ones you look at. That means a rate of 2%. Now dont be happy yet. The remaining 2% are not just go and buy. There are some companies like asian paints which defy odds. BUT….there is a big BUT…In these 2%, buy when the price is right. And economic enviroment like we have right now. There are oppurtunities in small and mid cap segment. Companies that can be large cap in 5-10-15 years from now small and mid cap segments.
book am reading
Stoicism and art of happiness by donald robertson..Its a must read..
