How can we know that perticular stock(e.g. mold tek pack, bajaj finance etc) will not go up in next two yrs? These examples are retrospective studies.
By the way, i try to follow 100 bagger book. As per book, one should not sell stock because it is not going anywhere. Rather one should add that stock during this consolidation phase.
One point from that book is as follow
"DONT GET BORED
=People often do dumb things with their portfolio just because they’re bored. They feel they have to do something
=Why do people buy and sell stocks so frequently? Why can’t they just buy a stock and hold it for at least a couple of years? (Most don’t.) Why
can’t people follow the more time-tested ways to wealth?
BECAUSE PEOPLE GET BORED
=People get bored holding the same stock for a long time—especially if it doesn’t do much.
…They see other shiny stocks zipping by them, and they can’t stand it. So they chase whatever is moving and get into trouble.
=Wanger used to say, investors tend to like to “buy more lobsters as the price goes up.” Weird, since you
probably don’t exhibit this behavior elsewhere. You usually look for a deal when it comes to gasoline or washing machines or cars. And you don’t sell your house or golf clubs or sneakers because someone offers less than what you paid
=Usually the market pays what you might call an entertainment tax, a premium, for stocks with an
exciting story.
=So boring stocks(stock going no where) sell at a discount. Buy enough of them"