These four penny stocks turned over 100 baggers! Want to be a part of this league? Read to know how!
The key question is: How should investors handle such stock market crashes?
The first half (H1) of the calendar year 2022 (CY22) is done and dusted. The Indian equity benchmarks reported their second worst drop in 14 years in the first half of CY22 as volatility spiked on account of the ongoing geopolitical conflict, aggressive interest rate hikes to combat red hot inflation, and foreign sell-off.
Sensex as well as Nifty reported losses of about 9 per cent each in H1 of CY22. That’s the worst after a 15 per cent slump seen in the corresponding period of 2022 when the pandemic outbreak shook the global equity market.
The key question is: How should investors handle such stock market crashes?
The best answer is that the stock market crashes are best handled by getting back to the basics of long-term investing. It reminds me of a very famous quote from Thomas Phelps, author of ‘100 to 1 in the Stock Market’. The book highlights that in order “to make money in stocks, you must have a vision to see, courage to buy, and patience to hold.”
Phelps’ quote is grossly incomplete without this sentence –“patience is the rarest of the three”. Isn’t it true, as an investor, we do lack patience, right? Now, let’s see why Phelps’ quote is incomplete without this line.
The answer to this will leave you spellbound. Here is a table, which shows that if you would have held these stocks for 10 years, you would have hit a jackpot as these are the top four performing stocks from NSE in the past ten years (for CY22, we have considered YTD returns only).
The result shows how these Penny Stocks turned into 100-plus baggers! If you are not acquainted with the concept, let me tell you, a 100-bagger is simply a stock that jumps from Re 1 to Rs 100. These are rare gems and many well-known investors have turned wealthy because some of the stocks in their portfolios have become a 100-bagger.
The top-performing stock in the sugar sector is Dwarikesh Sugar Industries. It has almost turned into a 348X bagger while Minda Industries ranks second in the list after becoming a 269X bagger.
So, coming back to the point of Thomas Phelps, getting into the right stock is only half the job done while holding it patiently is the rarest of the traits. And, those who master this trait can be a megastar of the stock market!