Important: Don't miss the last paragraph.
When we
wrote Large Cap Nifty Stocks available at
deep discounts in December 2011, we were very excited to find a
number of great
companies available at very cheap prices. And since the world as well
as Indian economy hadn’t fully recovered, it was really common sense that one
stuck with businesses which
could weather the economic turmoil. We advised and bought a few of these large
caps for our personal portfolios.
So after an
year, when index has given 25% returns, we checked the performance of individual
stocks. And we must say that we are more than happy to see around 15 stocks giving
40% + returns. But there are a fair number of duds too. There are 10 stocks which
trade at discounts compared to December 2011 prices.
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| Nifty Stocks: One Year Returns (Dec 2011 - Dec 2012) |
As of now, markets are trading at a PE of close to 19 and
since markets have run up around 800 points in last 4 sessions, we are not sure
if it’s a good time to pick stocks. We would rather wait and watch for the time
being.
Caution: Our post might make you believe that we have
good predictive capabilities. The fact is that we don't. Why? Markets have
risen 25% in last one year. So have all stocks representing the market. And as
Warren Buffett said: A rising tide lifts each and every boat. You only find
out who is swimming naked when the tide goes out.
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