What if a company had no known CG issues and then when you invest , it gets caught in something ? How will one know when there is no track record for past misdeeds ? Hero MotoCorp and Polycab comes to mind as example.
Imho, one should just look whether the company can go bust or the stock can become a penny stock …if one can be sure enough of the actual scale of business and that all the numbers are not cooked , one can invest if it’s cheap enough . For example , in case of lux, a 15 year old case of alleged murder because of personal reasons and a now retracted SEBI allegation of insider trading is weighing on the stock in lowest point of business cycle . One would be quite right to buy it if he has got the patience to hold for the upcycle to happen because the risk is already in price ,company is debt free and can’t go bust .One just needs to harvest without thinking of keeping it for the next generation .
It makes more sense to make money recognizing how the market works and likely to behave rather than following a high plain of idealism and maintaining moral high ground only to make mediocre returns .
Disc : invested in polycab since 2020 but not in Lux yet because I lack patience .
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