I think TED stocks are great
the best businesses
the best returns etc

but if say one has a portfolio of 10 lacs and even if TED stocks appreciate 5 times in 10 years that would not make one rich (though returns are good)

TED stocks are more suitable for people who are interested in capital preservation with fairly decent returns

where as a small player who has only 10 lacs in the market would like to be big first before following TED strategy

for them the risk of loosing this small sum is fine but they want big returns

Originally posted by prabhakarkudva You'll be much happier and much richer and importantly much healthier(since you'll sleep well) if you buy TED XI stocks than the ones you already hold.Take a 2-3 year view and keep looking for stocks(every 2 years) than can easily grow at 30% or thereabout rates.Most TED XI stocks have tailwinds in their favour and have good managements so there is no need to look for businesses that are struggling to grow even when our GDP is growing at 8-9%.

Excelji,

10 lakhs is not a small sum according to me. If you can grow 10 lakhs at 30% for 20 years you'll have about 7 crores in today's terms (adjusted for inflation).I am 25 and with time on my side i'd rather harness the power of compounding than go for the jugular.I don't know about others but i'd rather grow the 10 lakhs at 30% than try to achieve 50% and increase the possibility of perishing.Also one cant become big and then follow sound investment policy.It should be the other way round.

Jack,
By investing 1/3 in high risk stocks and 1/3 in an index type MF your final result is going to be same as if you invest in TED's 30-35% growers assuming your high risk stocks pay off.If they don't you'll do worse.Since you are new to the markets i'd suggest you invest in good businesses with good management,grow your capital a decent pace and read up on investment before chasing outsized returns.

We should not try to drive a F1 car while we are just trying to obtain our driving license. If after you are a great driver there is no need to drive an F1 car for that matter.

Just my thoughts.

The figure is adjusted for an average inflation of 7%.In absolute terms it will grow to about 20 crores.

Also investing wont end after 20 years you can keep compounding it even further and benefits will be exponential.The tough part is not to disturb the compounding by trying to be too aggressive and incurring permanent loss of capital.

Edited by prabhakarkudva - 02/Jan/2011 at 9:58pm

Originally posted by jaximus Thanks for all your comments - My risk appetite is reasonably high (I'm 29 with no dependents). I would like to pick stocks that have great growth potential rather than steady dividend generators. The TED XI stocks look great, but I do wonder if buying them at this stage makes sense for me - are there any that you would recommend? Since I last posted, I also picked up OnMobile Global @288. Checking out Marg Ltd. at @150 odd - any thoughts? JR