Shreyash Devalkar's most precious investing lessons

Over the long term, sustainable wealth is created by quality and growth companies. These attributes in a company have historically transpired in steady compounding and lesser volatility during rough markets. Over the years, growth has been more about compounding. If growth is sporadic in a year or two, timing matters a lot while stock-picking, for instance, in the case of commodity stocks, wherein they can become multi-baggers for a year or two. While in case of structural growth stories, steady returns are possible. Secondly, the growth needs to be higher than nominal GDP growth for the stock to be able to create relative wealth.

This article was originally published on August 03, 2022.