Hi Basant,

Well written! For new readers of the book where it’s been published, it’d be a good read. However, for any visitor/member of this forum, it’s just another day of consolidating jointly-held beliefs.

More than your writing, I’d rather compliment you on the temperament & energy with which you lead this forum. Hope that spirit continues! (There is enough & more intelligence on the earth – it’s these two, which are scarce)

Taking off from your article, one thing that I’d like to pose to the group is whether the composition of TED-XI lives upto that. Many of the TED-XI stocks have turned out to be multibaggers in the last four year ride of Sensex from 4K-odd to 15K. Over this period, an addition of 10K points has actually multiplied the index by almost 4 times. Going forward, one might hypothesise the same absolute gain in the index, but the multiple factor is surely questionable. In that background, some of the stocks will perhaps not multiply as well as they’ve done in the past. The TED-XI composition is perhaps a balanced one, for a >25% returns without undue risk.

Would it make sense to identify a set of new ‘structural change’ stocks that will multiply with GDP growths of 10% & index movement to 25K in 3-4 years time? The forum favourites in this context are Pantaloon, TV18 & NW18, but is there a possibility of even these stocks multiplying by 20 times in the next 5 years? The question to ponder is whether these stocks are ‘discovered’ ones with healthy market caps or would they still classify as ‘hidden gems’. Despite regular updations on TED-XI, is there a point of considering another list of fab-5 stocks with mkt cap less than 200 crs (by applying all the same principles as have been done to select the XI)? Yes indeed, this one would be more roller-coaster, but if built on the Patel-Pabrai principle (Head-I-win, Tails-I-don’t-lose-much), it could create significant value.

Probably the forum favourites already are such stocks – simply because structural changes are long lasting phenomenon & not short lived fads - and hence will continue to multiply wealth at an inorganic rate. However, it always, always, pays to explore alternate views continuously so as to void thought inertia!

Anways, good luck to all of you. All of you on the forum understand markets & stocks better than me & perhaps more than 99% of people. It’s always nice to read the views of top percentile of thought leaders in any domain!