IDFC Bank

Anybody can suggest on IDFC Bank, Can we hold for longterm

 

Yes, IDFC bank may give good return in long term.

 

thanq sir

 

Do you see this one being a multi-bagger? IDFC vs RBL any views?

 

Both RBL and IDFC bank looks to be future mutibagger and may grow at 15% CAGR plus for many years.

 

15% CAGR makes it akin to Sensex. Certainly not multi baggers in My view. Its plain simple the compounding magic at play then. But then again this is my opinion though your response gives me an understanding of what a multibagger means to you sir.

 

15% cagr return for 15 years will do magic to your portfolio. trying to earn 30% cagr will destroy and evaporate your portfolio.

 

In my view if you invest in stocks which gives market beating returns, you are going to create wealth and many of stocks will be multibagers as per my definition, few of them may be multibagers as per your expectations also,but really can not pin point those few now, as it will be not realty, but only act of guessing or speculation. I am not so brave to do these predictions. . I belive in making a diversified portfolio of secular growth stocks which can beat market over a long period, keep on shunting out non performers and replacing them with some new growth story so that your portfolio keep on beating market. If we are beating market 5% or more , in CAGR, we should be happy. World biggest invester Warren Buffet has made just 19% CAGR, still created huge wealth.Believe in Magic of Compunding, avoid short cuts . always remember, if in one speculating bet you loose 50%,you have to make 100% in your next bet just to wipe out loss of first bet. Which shows importance of not losing is double of winning.

 

Well said. And I don't disagree that both stocks may be reasonable bets (particularly RBL in my view) for a 15% CARG over the medium term(3-5years). Long term >5years isnt my cup of tea and Banking is a space which will certainly see some massive changes (including some disruptive) over the long term.

And yes "magic of compounding" is a concept and its core relevance to money in wealth creation is well understood coming from a family of few mathematicians.

 

IDFC bank trading only at two times of book value and being among most modern banks, deserve to be traded in three digits.I hold the stock.

 

@kharb Sir, why do you think the market doesnt ascribe to your view? Is the market irrational, stupid or something similar