Companies with great returns despite multiple drawdowns | Fundamental Kings | Value Research We look at companies in BSE 500 that posted good overall returns since 2012 despite multiple dips.

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Don't be hasty to exit

We look at companies in BSE 500 that posted good overall returns since 2012 despite multiple dips.

don-t-be-hasty-to-exit

Success is always hard-fought. You will stumble, you will fall, but if you keep going, you will eventually rise.

No, we haven't switched to being a motivational website. However, the stock market is no different. Even the most robust of businesses are bound to hit a snag once in a while. But that shouldn't always be a reason to exit. It is important to assess the present, dig up the reason why a business is struggling and determine if its woes are temporary. Even the most successful investors have picked stocks that have gone through periodic dips but have eventually been rewarded for their continued faith. Occasional ups and downs are part and parcel of wealth creation and if anything, a dip only gives you an opportunity to accumulate more.

So to find out real-life examples of such companies, we turned to the BSE 500 index and did some digging. These companies, despite multiple drawdowns, gave solid returns to its investors in the long run.

The companies in this list satisfied the following criterias:

  • ROE of more than or equal to 15 per cent in eight of out last 10 years and 10 year median ROE of more than or equal to 15 per cent. We use this filter to know the quality of the companies. Higher and more consistent return on equity is, better it is for companies.
  • Overall returns per annum since 2012 is more than or equal to 15 per cent.
  • Number of calendar years in which it has given negative returns is more than or equal to three times.

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