One way to find multibaggers has been to buy companies with some competitive strength when their prospects look ugly in the near term and the market is giving them away.

 

 

Also, most people who have been in the market for less than 5 years think they can get a 20%+ return while most people who have been in the market more than 20 years think they can get a 12% return. (A survey quoted by WB)

 

The reality is most lay investors like us struggle to beat the market.

 

 

Would like to coorect little bit.

 

Past data is important for assessement of companies competitive strenght as well as management capability. I dont think in India we have any company which is having something very unique to offer, theres always a competitor. So what distinguishes them is the management. INFY grown due to NM and Wipro due to Mr Premji. In IT revolution many companies have tried to emulate but very few survive decently.

 

Regarding future, investor has to look at the future. We have to live year ahead to win a good deal. So what matters is the identification of good company and most important is buying them when they become cheap! Heres the catch, cheapness comes at the cost of challenging the crowd. For example when everything was collapsing then you can very easily see that many companies are written off by the investors and now compare yourself the prise difference. Many of them are still 2-3 baggers in short span!