As a long-term investor, most people are going through a tough period. This is not the time to liquidate your portfolio or stop your SIPs, as advocated by many, rather, be intelligent and spot the best futuristic businesses, which are poised to grow much faster and higher with India's growth story.
One needs to come out of the index view, and being stock specific is more important. The index may fall or trade in range for some time, but some of the stocks can give attractive valuations and superb growth visibility going forward.
The recent results guidance from management in certain stocks like Amara Raja, CG Power, Cummins, Torrent Power and today's blockbuster results from Transraill Lighting show the underlying valuation and growth opportunities on a long term basis for these businesses.
At the same time, consumption-related stocks like Raymond Lifestyle, ITC, and EMIL have disappointed with poor Q-3 results. The recent action from the Central Govt on Income Tax slab revision and interest rate cut by the RBI may revive consumption going forward.
The auto numbers for January are so encouraging, and with the above actions, the momentom to pick up further is on the positive side only. What is missing currently is the positive sentiment, and this is the time the majority of the investors start becoming impatient and forgetting all the valuable rules of investing.
If you want to be successful, you need to be realistic and accept a period of underperformance. Only the most resilient can survive on a rough pitch, and we are precisely that.
We have learnt to bat on an easy pitch all this while, now let's learn how to bat on a bad pitch..
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