We often hear from experts, Equity is for long term. It's not clear. Which company's equity? Be specific and not generic. What is this long term? 5 years, 10 years, 15 years.........? Who can say of more than 6000 listed stocks how many will survive this vague long term. When we say long term survival with good growth then how many of us are sure that today's quality will be everlasting. Other than some odd 100 companies in India, today can anyone say for sure how many companies can be really called quality companies to last life long? Everything is just a guess.
My observation is for more than 99% of listed companies in India no surety of long term quality continuation. It is only a game on valuation more on short term sentiments. Yes after 10 years or 15 years or 20 years ..... from now we might say X company turned as quality company. History says maximum companies have either failed or growth stalled after some years and only few companies went a long way or still growing.
Think again when someone just says for anything to justify that "Equity investment is for long term".
( Investor guidance effort from Nurture India Consultants Pvt Ltd)
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