Within a couple of years, or five, down the line, Group A will have stabilized. Their share prices will be in line with future growths. At that time, B will start looking expensive to the big pockets and they will see opportunity in Group A. Then sector rotation will start.
Inspite of doing well, Group A companies will be dumped hence price will recede. This heaps of cash will percolate into Group B. These stocks will zoom up to trade at a premium over their intrinsic values in expectation of good future. Maharatnas will be applauded by the incumbent government as the ministers will derive footage.
Then we'd wish we had most of the Group A companies. But, if you are judicious now, this wish can become reality!
Inspite of doing well, Group A companies will be dumped hence price will recede. This heaps of cash will percolate into Group B. These stocks will zoom up to trade at a premium over their intrinsic values in expectation of good future. Maharatnas will be applauded by the incumbent government as the ministers will derive footage.
Then we'd wish we had most of the Group A companies. But, if you are judicious now, this wish can become reality!
That narrative was to give a glimpse into how a portfolio becomes successful.
Group A is currently underperforming. And the stocks are very cheap.
But, we don't see it now. Our minds want to follow the crowd and buy TCS or HuL from Group B, which is wrong.
When the choice of investors start to shift from Group B to A, which is inevitable, that will be the time for you to reap your benefits.
PS: Pls re-read the original post. I have correct a mix-up.
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