Consistency in growth is an extremely difficult characteristic to maintain, and analysing and realising the same is something that comes after one has failed in an investment decision, according to market veteran Raamdeo Agrawal.
“Times have changed. Markets move so much ahead of the potential of the company, and we keep thinking that it will keep going up, so I think that’s where the mistake is there,” Agrawal, the chairman of
Group said while speaking at an event organised by PMS Bazaar.
For Agrawal, growth is the very fundamental part of his investing style.
“But when you put growth as a cornerstone of your investing, it’s a kind of a speculation, because nobody knows the growth,” he said.
The one thing that Agrawal believes he has learnt in his investment journey is that high growth is not possible for a very long time.
“Even very high growth companies, after 3-4 years of 35-40% growth, get tired,” he said, explaining that one does not have control over the external environment which makes sustainability of growth vulnerable.
(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of Economic Times)
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