Long Term Investment

Isn't long term investment very risky? There are so many possibilities like: delisting, merging, 54 weeks low, fraud in the management, scams etc. Keeping this in mind, I found long term very risky these days.

My strategy is to go for a fundamentally good scrip and wait for atleast 10% to 15% increase and book 60% profits and the balance after 30% increase.

Do you agree?

 

Depends on the stock to stock. You need to have some very good quality stocks, some quality stocks, and some not so great stocks. The high quality stocks are the ones to hold for long term. The rest should be more opportunity based.

 

Long term investing...... Nothing but an illusion

 

IMHO long term does not mean no supervision or deep sleep. You have to keep watch and alert for what is happening. If you don't hold for long term how you will get compounding benefit? Compounding result in multibaggers stocks. I got 3 bagger from Bajaj Finance (300% gain) because it is good stocks and growing from year to year by compounding gains. I have lot of other stocks that are becoming multibaggers because of compounding over long period of time. If you sell in short time for small gain you will miss out on big gains.

 

How to identify compounding stock investments
Chuck Akre, CEO of Akre Capital Management, discusses why he focuses on "compounding machines," or companies that are able to reinvest their free cash flow and deliver above average returns.

https://www.investmentnews.com/section/video?playerType=CMWealth&bctid=3615896090001&date=20140610

 

thanks srouta for sharing.

 

compunding stocks for grand children by safal niveshek

 

HDFC bank is among the best compounding stock Indian market is offering since last two decades and it may do so for one more decade but at slower pace 15% CAGR.

 

I would like the last 4 in the list for my grand children.

 

from 800 cr bank to 2,95,000 cr bank . amazing and eye popping. HDFC is front runner of indian financial industry.

 

Sooper gains ideal buy and hold stock

 

I think following stocks bearing in mind their potential can be held for a longer term:
1. MCX
2. Apcotex (Might be another asian paints in the future)
3. Titan
4. Oriental Carbons (Pure tyre play and only manufacturer in India for radial tyres)
5. Equitas Holdings - A very good micro finance play