Motilal Oswal 16th Wealth Creation Study by Mr. Raamdeo Agrawal was released on December 09, 2011 at an event at Rotunda Hall – Bombay Stock Exchange, Mumbai.
The Study (2006-11) is divided into three parts:
1) Wealth Creation Study findings,
2) Theme 2012: Blue Chip Investing | Creating wealth from dividends
3) Market Outlook
Presented by Mr. Raamdeo Agrawal, the key Highlights of Motilal Oswal 16th Wealth Creation Study are:
Reliance Inds, Sanwaria Agro Oils & Kotak Mahindra Bank – Biggest, Fastest & Most Consistent Wealth Creators respectively.
Financials have emerged as the largest wealth creating sector for the first time ever. Going forward, expect the sector to maintain its top slot led by existing and new private banks, and eventual listing of insurance companies.
Very fast growth in stock prices creates transitory multi-baggers. In most cases, what follows is prolonged and painful price and/or time correction.
Blue chips are fountains of dividend, and offer as much, if not more, investment growth potential than lesser quality companies, but with far less risk.
In investing, there is no profitable substitute for quality. Understanding quality of the company doesn't stop at profits and profitability, it must extend to dividend payouts and longevity.
Most Blue Chips enjoy premium valuation. In deciding when to buy, one should focus not only on P/E, but also consider payout ratio, relative dividend yield, and earnings growth potential.
In India, over last 20 years, Blue Chips have significantly outperformed benchmark indices with much lower risk.
The The presentation was followed by a panel discussion on “Future of Investing”, where the eminent panelists - Mr. Rakesh Jhunjhunwala, Mr. Madhusudan Kela and Mr. Raamdeo Agrawal and the moderator - Mr. Ramesh Damani got together to discuss the future of investing and the challenges ahead for Indian economy and markets.
To download the full Study Click Here