Dear Friends,
Warren Buffet said, “Time is the friend of the wonderful company, the enemy of the mediocre”.
Let us Examine this with our Maithan- Potential Mulitbagger Blog Example- Maithan Alloys, See at Maithan Blog
Maithan Alloys 2012 to 2016 Price Chart
Maithan Alloys was trading at 61 Rs during the top of 2012, It went Down to 25 Rs in 2014, Nearly 60% Down, and from 25 Rs in 2014 it went to 110 Rs in 2015. Even one would have bought it at the top of 2012, one would have made a handsome 2X Return in 3 years.
Maithan Alloys 2014 to 2019 stock price chart
Maithan was Trading at 110 Rs in 2015 it went to 920 Rs in 2018, 9X in 3 Years even after Being Bought at the top in 2015.
Many followers mail me and ask me the best price to buy the stocks on my blog, for them I would like to say Instead of scratching heads for the best price, I would say “It is far better to buy a wonderful company at a fair price than to buy an ordinary company at a wonderful price.”
Volatility is a friend of a long-term investor, provided you are able to find a wonderful company which is a cash machine and buy it at a fair price.
Regards,
Suyog Dhavan
FAQs
1.What does the phrase time is the friend of the wonderful company mean?
The phrase ‘Time is the friend of the wonderful company, the enemy of the mediocre’ was given by Warren Buffett, and it means that if a company has strong fundamentals and is able to deliver consistent profits, it is essential to hold its share for the long term to witness the power of compounding.
2.What defines a wonderful company in investing terms?
A wonderful company means a company that delivers profits regularly, has good assets, strong cash flow, strong and ethical management, and has long-term industry relevance.
3.Is long-term investing safer than short-term trading?
Yes, long-term investing is safer than short-term trading, as it doesn’t affect you much during market volatility. There are rare chances that your invested value will become zero, unlike short-term trading, which is very risky. We have witnessed that the market has always moved up over the years. Hence, long-term investing is safer and a better option for retail investors.
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