Over the past two years, one of the biggest lessons I’ve learned in the market is that people stress too much over quarterly results. I used to think that if a company delivered strong earnings say, 30% PAT growth YoY it would naturally reflect in the stock price. But reality is often different. If the broader industry is facing headwinds, even the best-performing companies can struggle, and the stock may not move as expected.
This made me realize the importance of a top-down approach. If a sector has strong tailwinds, even an average-performing company in that space can deliver solid returns. On the other hand, if the sector itself is in a rough patch, no amount of individual brilliance may be enough.
A classic example was post 2021 when the Nifty Realty Index shot up nearly 500%. Simply holding the index or picking any stock within that universe would have been rewarding. That made me rethink how I look at stock selection. Sometimes, riding the sector wave is more important than just focusing on individual company numbers.
This correct actually.I’m trying to learn which all sector will be booming in which all quater. But I’m not able to find any resources associated with it. Can you suggest me some resources to begin with ? I’m new to investing.
I’m a new investor trying to understand how to catch sectoral tailwinds early so based on my limited understanding this is what I know. One approach that has helped me is something @Worldlywiseinvestors Sir from SOIC mentioned in one of his videos.
Whenever a company announces its quarterly results, instead of just looking at it in isolation, compare it with other companies in the same sector. For example, if IHCL reports a strong quarter, I check how EIH, Lemon Tree, and other hospitality stocks are performing. If multiple companies in the sector are showing strong numbers, it could indicate that the hospitality sector is entering a tailwind phase.
Once we spot this trend, cross-check your belief by diving into brokerage reports on the sector and individual companies. This layered approach helps to filter out one-off performances and identify genuine sectoral momentum.
Hello, I am in the same boat as you are, but the below are some of the resources which have helped me immensely:
Initiating coverage reports from various public websites
DHRP reports from SEBI
If you have access to LLMs, then a deep research is mind-blowing to say the least.
Last but not the least, if you want a true multibagger in your life, register for the SOIC course, Ismohit @wordlywiseinvestors will not only help you with his sectoral deep dives, he might give you enough knowledge that you might become a competitor in the industry of your choosing (This is not a promotion, just a source of deep knowledge, and I am a paid member)
Hi,I am new to the Community. I absolutely agree,Tailwind is like a second engine and it does accelerate your return.But i am wondering that market is such dynamic and it price in very quickly,it sense way before the real news or any structural change/shift in the sector are out on public domain. What I believe is one can definetly do home work and find those on time and ride the growth but it is very difficult. The other path is to bet on beaten down sector which are facing headwind and are been through digestion face but structurally good balance sheet. Please guide if we can give another approach and sharpen it. Thanks
