25 Years Wealth Creation Study by MOSL

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Recently Motilal Oswal (MOSL) published 25 Years Wealth Creation Study. I found it interesting. It’s must read / watch for investor.

Download PDF document of study @ https://motilaloswalwcs.com.

Some content I like it much, hence putting here for VP friend’s consumption. Page 66.
Per capita GDP.

Per Capita GDP
Per Capita GDP881×718 166 KB

As per Yr 2018 survey India’s PCG is $ 2010 vs China’s 18 K vs USA & Europe $ 50+.

With increase PCG essential spends increases slightly in absolute terms. Like at present we spend 35-40% income in basic necessity like Vegetables, milk etc. With increase in PCG that essential spends decreases in percentage terms while discretionary spend and savings increases sharply.

Will put some more observations in coming days. Go through it and give your opinion.

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Observation 2:

Second I like most is sector structure. Page: 56.

Sector Structure
Sector Structure829×742 190 KB

Tobacco, paints and Auto - 2 Wheeler has ratings 4 out of 5. Industries in those field are profitable since decades and good wealth creater.
Banks, IT & Pharma as per them has 3 points.
As per MOSL packaging, Textiles and sugar has high rivalry and no pricing power.

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Observation 3.

Sector Migration. Mega - Mid and Mini. Page 14.

Sector Migration
Sector Migration742×730 86.3 KB

This is very interesting.
Out of 931 mini companies 4 migrated to Mega, 16 Migrated to Mid where as 911 stays in Mini group. As per it 911 companies gave 0 returns in 25 yrs.

Out of 131 mid companies 10 migrated to Mega, 22 remains same and 99 migrated to mini with -1% returns.

Out of 97 mega companies 32 remains in Mega, 20 migrated to Mid and 45 migrated to Mini with -3% returns.

In same period sensex gave 9.2% returns.

WIP - may add few more observations later.

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We have a thread on this & does not merit a separate thread. Please move the content to that thread. My Summary of MOSL Wealth Creation Study

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