Gains first, risks second is the exact mistake that I am trying to point. I do not know whether the likes of Kotak Bank, Asian paints, Dmart etc can keep growing at 20%. But they have very good execution, solid competitive advantages, and management with high integrity. They only have valuation risk, which is why they will always find buyers even when the markets are falling. So the reason I have them in my portfolio isn’t because I am aiming at some x% gains, but because they minimize the risks I am exposed to. Think about risks first, and let the gains take care of itself.
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