Do we need to find 'Hidden Gems' at all??

I am thinking that what is the need of finding NEW stocks for investment? Look at HDFC, HDFC Bk, LUPIN, TCS, Hero Moto, UPL, PI Ind, Motherson Sumi, Page Ind, Nestle, P&G Con, Dabur etc.
These are not so called 'Hidden Gems'. All know these stocks; still these are true wealth creators. Then why are we taking risk by investing in NEW ideas?

My question is : Do we need to find 'Hidden Gems' at all??

 

Absolutely your thinking s correct.. But smaller things do more wonders than larger things ... For example, repco home finance has grown its loan book from 1 billion in 2003 to 60 billion as now... Could u find this kind of growth in HDFC ? ... Still repco is smaller only ... The kind of growth which u can get in small cap or mid cap s huge over the next few years as compared with large caps ... At the same time , it has huge risk too...

 

You do have to understand that everyone has a different risk profile. Some do like to take more risk than usual in order to achieve a much higher rate of return. I do agree with the companies that you have mentioned are huge wealth creators but on the other end a so called 'hidden gem' if proved right can give you unimaginable returns. Those who are in a particular industry might have more knowledge of that particular industry and they generally have better odds of identifying the upcoming trends of the industry as well as an upcoming company which is growing at a good pace. In that scenario it would be advisable to invest there as you would be taking an educated risk with all your knowledge. The risk factor can never be eliminated while investing in stocks be it a huge company or small one but doing proper research and having complete knowledge about the company one can reduce the risk even while investing in a smaller company.