I will share with you an unpleasant truth.
Everybody wants us to trade frequently, including our broker, our advisors and you know why?
Because we enjoy tinkering with our portfolio all the time.
And, since we like it, nobody wishes to lose our business by telling us to buy good businesses and sit patiently over them.
We all like comforting lies more than unpleasant truths, and one unpleasant truth is that for most of the investors, buying right and sitting tight is the only way to wealth creation.
Another unpleasant truth is that we don’t have to chase the highest returns to be rich. First, it’s difficult, second, decent returns sustained over longer periods is what brings about wealth creation. Remember, time is an ally of good investments.
Above, we have shared a chart of Can Fin Homes. We initiated this stock in May 2013 around 30 odd levels and despite so many 10-20% corrections in the interim and a major 50% correction twice, the stock is still up 20 times in 8 years and all those who have been with us since 2013 are sitting on 20x returns on the stock.
Just remember one thing, if your stock research is decent and you have a sound temperament, i.e., you are able to digest market corrections and in fact invest more during such periods, you will probably be better than 90-95% of the market participants.
Let me end this with another unpleasant truth. If you want to retire rich and score high returns on your investments, there’s just no alternative to equity investing. Even though the govt. has withdrawn the interest rate cut on PPF, NSC and other small savings schemes, but that’s only temporary.
The interest rates on PPF peaked out at 12% in 2000 and have been trending downwards since. Thus, while investing in stocks can be risky in short term, not investing in stocks is the biggest long-term risk.
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SEBI Research Analyst Registration No. INH100001690
Research Analyst Details
Name: Ekansh Mittal Email Id: [email protected] Ph: +91 727 5050062
Details of Associate: Not Applicable
Analyst Certification: The Analyst certify (ies) that the views expressed herein accurately reflect his (their) personal view(s) about the subject security (ies) and issuer(s) and that no part of his (their) compensation was, is or will be directly or indirectly related to the specific recommendation(s) or views contained in this research report.
The views expressed are based solely on information available publicly and believed to be true. Investors are advised to independently evaluate the market conditions/risks involved before making any investment decision
This report is for the personal information of the authorized recipient and does not construe to be any investment, legal or taxation advice to you. Ekansh Mittal/Mittal Consulting/Katalyst Wealth is not soliciting any action based upon it. This report is not for public distribution and has been furnished to you solely for your information and should not be reproduced or redistributed to any other person in any form. This document is provided for assistance only and is not intended to be and must not alone be taken as the basis for an investment decision. Ekansh Mittal or any of its affiliates or employees shall not be in any way responsible for any loss or damage that may arise to any person from any inadvertent error in the information contained in this report. Neither Ekansh Mittal, nor its employees, agents nor representatives shall be liable for any damages whether direct or indirect, incidental, special or consequential including lost revenue or lost profits that may arise from or in connection with the use of the information. Ekansh Mittal/Mittal Consulting or any of its affiliates or employees do not provide, at any time, any express or implied warranty of any kind, regarding any matter pertaining to this report, including without limitation the implied warranties of merchantability, fitness for a particular purpose, and non-infringement.
The recipients of this report should rely on their own investigations. Ekansh Mittal/Mittal Consulting and/or its affiliates and/or employees may have interests/ positions, financial or otherwise in the securities mentioned in this report. Mittal Consulting has incorporated adequate disclosures in this document. This should, however, not be treated as endorsement of the views expressed in the report.
We submit that no material disciplinary action has been taken on Ekansh Mittal by any regulatory authority impacting Equity Research Analysis.
Disclosure (SEBI RA Regulations)
Whether the research analyst or research entity or his associate or his relative has any financial interest in the subject company/companies and the nature of such financial interest – Yes, investment in Can Fin Homes in Father’s account
Whether the research analyst or research entity or his associates or his relatives have actual/beneficial ownership of 1% or more securities of the subject company (at the end of the month immediately preceding the date of publication of the research report or date of the public appearance) – No
Whether the research analyst or research entity or his associate or his relative has any other material conflict of interest at the time of publication of the research report or at the time of public appearance – No
Whether it or its associates have received any compensation from the subject company in the past twelve months – No
Whether it or its associates have managed or co-managed public offering of securities for the subject company in the past 12 months – No
Whether it or its associates have received any compensation for investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No
Whether it or its associates have received any compensation for products or services other than investment banking or merchant banking or brokerage services from the subject company in the past 12 months – No
Whether the subject company is or was a client during twelve months preceding the date of distribution of the research report and the types of services provided – No
Whether the research analyst has served as an officer, director or employee of the subject company – No
Whether the research analyst or research entity has been engaged in market making activity for the subject company – No