investing is the most profitable form of trading!
it is a myth that you invest in a company.
the reality is that you invest in a management
and
you invest in a business!!!
if the business is bad
even best management can't do anything for long!
for a moment,
let's assume that the business makes business sense.
then, there are 4 types of "managements" available for investing:
1. good management going thru bad times
= this is the best investing bet, a multibagger!
give then time and they will give you a wonderful gift!
e.g. tata motors' journey from 110/stock to 1376/stock
present example = mahindra satyam
2. good manangement going thru good times
= hold on, this is the best momentum play
stay with them till they are around
e.g. hero honda (since inception)
3. bad management going thru good times
= stand near the exit door if you can't avoid the bait!
e.g. suzlon
4. bad management going thru bad time
= stay away!
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