Keeping cyclical stocks forever
Vs
Selling them at the height of a cycle
Which one is preferred option? Do people keep cyclicals long term, like proverbial Colgate stories, and benefit from it?
Case in point:
Tata Steel, bought at 27 rupees
Current price 105
When we look at 10-15-20 year price history of Tata steel, we find that 27 INR and 80-100 INR have come multiple times. Looks inevitable/likely that as the cycle turns, the stock can again reach 30/- levels in few years.
They have recently split there stock first time ever.
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