Saturday, December 5, 2009

The Art of Picking Multi-Baggers

IF you had bought 100 shares of Wipro at the rate of Rs 100 per share in 1980, they would be worth Rs 200 crore (Rs 2 billion) today.

If you had invested Rs 10,000 in Infosys shares in 1992, you would be richer by Rs 1.5 crore (Rs 15 million) today.

If you had invested Rs 10,000 in Ranbaxy in 1980, you would have got Rs 19 crore (Rs 190 million) today!

And, not so far back in time, if you had invested Rs 40,000 in Unitech during the lows of 2004, your bank account would see a whopping Rs 1.1 crore (Rs 11 million) today!

This is known as the art of picking multi-baggers. Once you identify the fundamentally strong company, your job is not over. You will have to stay invested in that company for years, probably for decades if you want this much of Capital Gain.

The key of picking a multi-bagger stock is that, you watch for the Management team of the company and the PASSION of the founder of the Company. It is not the great Business idea who make multi bagger stock. But it is the founders of the company and it’s management team who will make any Business a Big Fortune.

Picking Multi-Bagger stocks is more of an Art than a Science. It doesn’t require only the analysis of the financial statements but it also requires the art of analyzing the management team and it’s founders. So next time whenever you decide to invest in any stock, look for the founders and the management team of that Business.

Learn to understand and analyze the founders and the Management team of any Business. And you will be master in picking multi-baggers. Warren Buffet is the master of picking multi-bagger stocks because he analyze the management team and the founders. He first see that how passionate the founders are about their Business and after that he takes any Investment decision.

So you also learn this art…!!!

No comments: