Hi,

This quarter’s report card is very impressive. Close to 50% of TED stocks have been up by more then 100% ever since they were put in this forum. So while the excitement has been away in power and fertilizers if any investor would have just held onto the stocks discussed on The Equity Desk he would have done tremendously well.

In our The Equity Desk XI  we made one change as Axis bank replaced Bharti. This concept of 11 stocks initially started at TED seems to have become a fancy item with a JM launching their new fund which would invest in only 11 stocks and a TV program where participants had to choose 11 stocks..

People continue to trade in several of the known names which would become unknown when the tide turns. The problem is of non recognition of the subtle difference between making money and wealth. Most of us in our initial days of investing want to make money from stocks but it is only when we start to mature in terms of our investing career that we understand that the real need for investing should be to make wealth and money making is a small part of that continuous flow that creates wealth.

Note: Companies in bold form part of The Equity Desk XI .

Motilal Oswal carries out a wealth creator survey every year and though the data is historical and means nothing in terms of monetary benefits the biggest classification there is in terms of categorizing multibagger is as a one time wealth creator or an enduring multibagger.

For example Infosys, Wipro, Satyam, Silverline, DSQ Software and Pentamedia were all multibaggers but while the first three enduring multibaggers creators the other three were what we can call sucker stocks.

This bull market will end with a lot of sucker stocks. The point to remember is that stocks, sectors and investors perish but markets always exist to flourish again.

So good investing logic indicates that we should remain invested with credible names rather then bet on the company on whom very little is being written or said about.

Regards,

Basant