A framework to get you to a 50-100 bagger stock.
What it takes:
1. Small/Mid starting market cap - so that there is enough scope for the market cap to expand.
2. Institution worthy but under-owned by institutions - Secular multi year growth catalyst + scope for persistent buying over months and years
3. Neglect (during hold period) - not a mainstream idea - often they don't believe in it till the last one-third phase - ability to hold against consensus is the edge
4. Long Holding period - huge gains are made only if you’re willing to hold the positions for years and decades and have an aversion to selling or booking profits.
5. Drawdown - methodology to ignore 50-90% drawdowns. I don’t say ability to stomach as one can’t really stomach it. It essentially comes down to not even looking at it or avoiding calculating your returns or drawdowns. Vision helps (covered below).
6. Allocation - Just the right starting allocation (typically small enough) that you never feel the pinch even if it goes wrong and you can continue to hold on for as long as it takes
7. Vision - to see the big picture and the larger trend and not be bothered by events in the interim.
This in no way means one should follow this approach - there are many ways to make it work in the markets - but just to understand that this is what it takes.
@aditya_kondawar@DealsDhamaka India's TFR has become below 2. Bengal and UP developing. Maharastras politicians and babus should find different method of sucking blood of its citizens.
@DhanValue They're so stupid people, they loose more GST revenue by trying to tax HNIs. All HNIs have moved to Dubai. If someone wants more freedom they'll go to Mauritius. Wealthy people will just migrate. Number of poor will increase.