Deepak Shenoy, CEO at Capitalmind, recently took to X and shared a clip from the Motlal Oswal Ltd YouTube channel expressing his opinions about multibaggers. “Don’t aim to find multibaggers; it’s a terrible goal,” Shenoy said along with the video post. He further added that even is a company growing at 15% doubles in five years, it bags the multiples if you stick around. “Sometimes you get five years of stock returns in one year; attribute it to good luck, and ride winners,” Shenoy said.
Multibaggers are basically equity shares of a company whose market price goes up multiple times than the price it was originally bought at, particularly in short period of time. These shares are generally issued by companies that have significant growth potential. The video clip that Shenoy shared advised the investors to keep it really simple and not to get into unnecessary calculations, and said, “Maths doesn’t make money.”
ALSO READBSE SmallCap: Another day, Another 1,500 points down. Biggest losers include…
Shenoy also gave his two-cents on the ongoing debate around SIP investments. Giving a reality check, he said that a 10-20% dip in the markets has always been normal and should be expected. But blind selling or not investing at this time is not the best idea. “Yes, some small caps will hurt a lot, so will some large caps. This seems like strong selling, some of it illogical, some of it reasoned. I don’t think recommending blind selling or not investing at this time is a great idea,” Shenoy wrote in his post on X.
Giving hope to investors, Shenoy said that it may be a painful time but if the companies an investor owns have low debt and good fundamentals, then the markets cant stop them and they will eventually shine. “But you have to live through the darkness to see the dawn. Sell if you can’t handle the volatility, of course, markets often transfer returns from those who couldn’t, to those who can,” Shenoy said.
ALSO READSIP Investing: S Naren has lit a fire. Here’s what industry insiders are saying
He further added that it doesn’t matter if the stocks are falling. One can sell to rebalance because whatever one wants to buy is falling too. He also added a touch of sympathy for the investors who are seeing this for the first time.
» Read More
