Business News›Markets›Stocks›News›For the right ‘reason’, whether one or many: 5 large-cap stocks from different sectors with upside potential of 18 to 32% in 1 year
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For the right ‘reason’, whether one or many: 5 large-cap stocks from different sectors with upside potential of 18 to 32% in 1 year
Synopsis
It is an essential in all market conditions, but more so when there is volatility and high valuations. It is a minor thing, but it helps investors not only earn better returns, but also deal with bearish markets better. This simple but essential thing is “reason”. You need to have a sound reason for buying a stock and owning the underlying business. The reason could be any. Because a company is in a business where the chances of a competitor coming is next to none as there is space for only two players in that industry. Or because a company has successfully negotiated a debt situation and also owns some of the strongest brands in the FMCG space. Whatever it is, having a reason is a must when you put hard-earned money into equity.
As investors we all probably have our quirks. By the end of every trading session, we have 20 reasons and explanations for why the markets fell or rose. But when it comes to buying stock, we normally don't think of a “reason” for buying that particular stock. Just to put this in perspective. What is the reason for buying a telecom stock, or why buy a particular FMCG company, or a particular lender when dozens of them are listed? Having a sound
ETMarkets.com
12 mins read
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