Stock picking is not easy. It is about analysis. It is about avoiding the landmines. It is about position sizing. It is about risk management. It is about having no ego to pull out when your thesis doesn’t play out.
Here is a data point that Devina Mehra, founder and CMD of First Global, shares. Followed by some advice for stock investors.
Over the past 20 years, if you look at all the listed companies in India, how many of them have shown some profit growth (however miniscule) every single year?
Just ONE. HDFC Bank has shown profit growth every year, over 20 years.
Let us reduce the time frame.
Over the past 10 years, if you look at the 4,200-odd listed companies in India, how many of them have shown profit growth every single year? Just 16! Just 0.4%! Let that sink in.
A bar as low as net profit growth >0% every year.
Here are the companies in alphabetical order.
- Asian Paints
- Associated Alcohols & Breweries
- BDH Industries
- Bharat Rasayan
- Can Fin Homes
- Dynacons Systems & Solutions
- HDFC Bank
- Kotak Mahindra Bank
- Lincoln Pharmaceuticals
- Lux Industries
- Mallcom (India)
- Medicamen Biotech
- Morepen Laboratories
- Power Grid Corporation of India
- RACL Geartech
- Vipul Organics
Source: https://www.morningstar.in/posts/74596/companies-that-have-shown-consistent-profit-growth.aspx
Stock picking is not easy. It is about analysis. It is about avoiding the landmines. It is about position sizing. It is about risk management. It is about having no ego to pull out when your thesis doesn’t play out.
Here is a data point that Devina Mehra, founder and CMD of First Global, shares. Followed by some advice for stock investors.
Over the past 20 years, if you look at all the listed companies in India, how many of them have shown some profit growth (however miniscule) every single year?
Just ONE. HDFC Bank has shown profit growth every year, over 20 years.
Let us reduce the time frame.
Over the past 10 years, if you look at the 4,200-odd listed companies in India, how many of them have shown profit growth every single year? Just 16! Just 0.4%! Let that sink in.
A bar as low as net profit growth >0% every year.
Here are the companies in alphabetical order.
- Asian Paints
- Associated Alcohols & Breweries
- BDH Industries
- Bharat Rasayan
- Can Fin Homes
- Dynacons Systems & Solutions
- HDFC Bank
- Kotak Mahindra Bank
- Lincoln Pharmaceuticals
- Lux Industries
- Mallcom (India)
- Medicamen Biotech
- Morepen Laboratories
- Power Grid Corporation of India
- RACL Geartech
- Vipul Organics
Source: https://www.morningstar.in/posts/74596/companies-that-have-shown-consistent-profit-growth.aspx