Let me take the example of Hindustan Unilever from the Indian Stock Market and General Motors from the American Stock Markets. Hindustan Unilever is in Fast Moving Consumer Goods sector. It is a Multinational Company and excellent performing company fundamentally, till now.
The high price of Hindustan Unilever was 325 during 2000. The 2000 bull market was followed by a bear market till 2003 in all world stock markets. From there a bull market started in all world stock Markets. The Indian Bombay Stock Exchange Index , Sensex soared from 2600 to 21000 in another five years where as Hindustan Unilever traded in between 100 and 300 till 2008 and it is still now trading between this range.
If had been a fan of Hindustan unilever for it s performance and its fundamentals, then you would have invested a major portion of your investment in that stock. But for the past 9 years I would not have given a return on your investments.
Had you invested your money in Infrastructure and Reality stocks, it would have appreciated by more than 100 times in these 5 years. So don’t get married to a stock. Always every bull market is supported by a new set of Sectors. Identify it to for successful investing.
Rety and infra stocks are again some that one must not be stuck on. Most black money flows into real estate meaning that the companies are capable of understating their profits to bag more money for themselves. Plus with the amount of land acquisition problems and cases they become even more volatile. Finally, global economic issues impact ITeS and real estate stocks most.
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