{"id":1824,"date":"2018-02-05T05:12:00","date_gmt":"2018-02-05T05:12:00","guid":{"rendered":""},"modified":"2025-11-06T16:42:11","modified_gmt":"2025-11-06T11:12:11","slug":"are-you-crazy-to-invest-for-5-years-above","status":"publish","type":"post","link":"https:\/\/www.equentis.com\/blog\/are-you-crazy-to-invest-for-5-years-above\/","title":{"rendered":"#InvestorEducation: \u201cAre You Crazy To Invest For 5 Years & Above?\u201d"},"content":{"rendered":"
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The above story holds true in real life. Quite often, we have frequent encounters with Mr. Fidgety, who catechize us with the question, \u201cWho has seen the markets after 5 years?\u201d, \u201cWhat if there is a World War 3?\u201d and \u201cWhat if more appalling scams are unveiled in the future?\u201d<\/p>\n\n\n\n

Yes, all these arguments hold its relevance. In this by-the-minute changing dynamics such as investor sentiments, global<\/a> factors, micro-indicators, etc.; stock markets also change at a rapid rate. And to make it more severe, the continuous strafe of media hype\/news, makes us indecisive and restless about our investments<\/a>. Bygone are the days where you come across any investor holding the shares of their grandfather.<\/p>\n\n\n\n

So, Does \u2018Buy and Forget\u2019 Strategy Still Works?<\/h3>\n\n\n\n

The world changes every minute and with this, even the company\u2019s revenues and their market cap keep fluctuating. So in light of the changing dynamics, can you adhere to the \u2018buy and forget\u2019 strategy for long? The obvious answer is NO!<\/p>\n\n\n\n

So, does that mean you should have a short-term horizon or adopt the buy and sell strategy? The answer to this as well is NO. Sound like an Antithesis here, right?<\/p>\n\n\n\n

Yes, we hold our conviction in long-term investing, but definitely, do not promote buy and forget strategy. How to achieve this? The first step is to design a portfolio comprising of fundamentally sound stocks that can stand the test of time. Having designed that, an investor needs to monitor those stocks on a periodic basis, to check for any alterations in the growth potential\/fundamentals of a company. If there are, one should conduct portfolio rebalancing, to ensure that you are aligned with your financial goals.<\/p>\n\n\n\n

Are You Crazy To Hold Stocks For Long?<\/h3>\n\n\n\n

As Warren Buffett rightly puts it, \u2018Investing is a longer-term game<\/a>. Only buy something that you\u2019d be perfectly happy to hold if the market shut down for 10 years.\u201d<\/p>\n\n\n\n

Still, many investors believe that long-term investing is impractical. So, let\u2019s have an example of few stocks which grew by 5-10-15 times in a tenure of 5 years.<\/p>\n\n\n\n

Scrip*<\/strong><\/td>Price as on 3rd May\\’13<\/strong><\/td>Price as on 30th April\\’18<\/strong><\/td>Appreciation in %<\/strong><\/td><\/tr>
MindTree<\/td>212<\/td>1085<\/td>411.79<\/td><\/tr>
Maruti Suzuki<\/td>1665<\/td>8808<\/td>429.01<\/td><\/tr>
MRF<\/td>13567<\/td>79820<\/td>488.34<\/td><\/tr>
Ajanta Pharma<\/td>211<\/td>1355<\/td>542.18<\/td><\/tr>
Eicher Motors<\/a><\/td>3132<\/td>31190<\/td>895.85<\/td><\/tr>
Motilal Oswal Financial Services<\/a><\/td>86<\/td>981<\/td>1040.70<\/td><\/tr>
CEAT<\/td>109<\/td>1590<\/td>1358.72<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n
*(The stocks listed above are only for illustrative purpose and should not be construed as the investment recommendation or our performance. It is safe to assume that few opportunities could be a part of the portfolio recommended to our paid customers.)<\/div>\n\n\n\n

This means that if you would have invested INR 1 lacs in these stocks, it would have grown to the tune of INR 5 lacs and more. If you compare this with the returns Sensex<\/a> delivered in the same bout, it would just sum up to 80% appreciation in 5 years.<\/p>\n\n\n\n

Stealth secrets for Identifying Stocks For A Long-Run<\/h3>\n\n\n\n

The rationale behind long-term investing is buying value businesses. Here are few tips on identifying solid stocks:<\/p>\n\n\n\n