Which are the best companies for long term investment?
Originally answered at https://www.quora.com/Which-is-the-best-company-that-I-can-invest-in-stock-market-for-long-term-investment/answer/Vinoth-Kanna-26
There are few things that you need to keep in mind to ensure that you are investing in a stock for long term.
- Strong Fundamentals
- Stable returns
- Future Growth
- Sector outlook
- Economic cycle
Filter stocks with Strong Fundamentals and with good future growth.
Future growth depends on good management, past growth performance and room to scale business.
Some sectors to avoid for long term investment.
- All PSU
- Oil & Gas exploration and refining, etc
These sectors may have government interferences.
Some sectors that can be invested for long term are
- Banks and NBFCs
- Domestic appliances
- FMGC and Domestic Pharma
- Gas distribution, etc
Examples of past good long term investments are
- Bajaj finance & HDFC bank
- Titan, Dmart, Trent, etc
- Bluestar, whirlpool, etc
- Nestle, Abbott, etc
Stocks that you can bet on for long term with current Fundamentals to expand both on valuations and on actual scale.
- Indusind bank, MAS financials
- Future retail
- Amber Enterprises
- JK cement
- Mahanagar Gas
- Ion Exchange
- Vibhav Global, etc
However long term investors should remain cautious by reviewing fundamentals. Sometimes Technicals Stoploss can help to identify an hidden fundamental issue.
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