@AmitContrarian - if you see stock charts of many great companies which have grown from small to mega, you will find hockey stick patterns, dormant for many years and then increased exponentially. Reasons for such exponential increases - company performs x stock rerates. I have lost many opportunities by selling too early in last 2.5 years - Thirumalai (10x), Piramal (3x), TCI (4x) & many more. So gaining from previous experience, I have realized
- Invest atleast for 3 years - even if the stock doesn’t perform (we have performer here atleast for next 4-5 years, conservatively we foresee profit of at least 2.5x in next 5 years, atleast double in 5 years - 15% CAGR )
- Dont sell compounding machines unless extremely over rating - 60+ PE
- Good companies will always be trading at higher PE multiples.
- It is not possible to catch top or bottom of stock everytime & re-entering is even more difficult after selling especially at higher price. So best way is to buy and hold
Story can be rechecked periodically, but run through the entire growth cycle of the company and don’t sell early. Stocks can be sold when growth stagnates but ride through the growth cycle. We are just at the start of the growth cycle at this counter.
The post is not meant to change your mind (as I know it is extremely difficult to change somebody’s opinions) but to learn from mistakes of others.