Are you shopping stocks ?
My previous video post “Selection by Rejection” was inspired from the learnings in “Beating the Street” by Peter Lynch
Why retail stocks ?
- Easy to understand business
- You can wait for business to prosper before jumping the gun and buying. I will give you an example
Go watch this
From 1962 to 2010 Walmart opened – 0 to 4393 stores
Now Walmart was and is an exceptional company, however the point is people could have invested in Walmart in 1972,1982,1992 or even 1995 and still would have made multi bagger returns. See the chart below showing returns from as late as 1995
The stock has been a six bagger in last 19 years , even after story being completely known across internationally and I am discounting the huge dividends it pays each year
Where to find these stocks ?
The best place to go for shopping stocks especially retail stocks would be your nearest shopping mall. Many of the biggest gainers come from the places that millions of consumer visit all the times. Given this was not possible for me I started with BSE website and list of companies listed on BSE. I was … Read the rest