Wealth Creation Study 2009-2014
Thematic Study | December 2014
19th ANNUAL WEALTH CREATION STUDY (2009-2014)
100x
The power of growth in Wealth Creation
HIGHLIGHTS
100x stocks are few. Finding them requires "vision to see, courage
to buy, and the patience to hold."
Value migration offers the most predictable 100x opportunities.
The 100x process is captured in SQGLP – Size, Quality, Growth,
Longevity and Price.
"In evaluating a common stock, the management is 90%, industry
is 9%, and all other factors 1%." (Phil Fisher)
Quality does not guarantee growth, and in turn, rapid long-
term Wealth Creation.
"To make money in stocks you must have the vision to see them,
the courage to buy them and the patience to hold them. Patience
is the rarest of the three."
—
Thomas Phelps in
100 to 1 In The Stock Market
TOP 10 WEALTH CREATORS (2009-2014)
THE BIGGEST
Rank
1
2
3
4
5
6
7
8
9
10
Company
TCS
ITC
HDFC Bank
Infosys
ICICI Bank
Wipro
Sun Pharma
Tata Motors
HDFC
HCL Technologies
Wealth
Created
(INR b)
3,638
2,073
1,307
1,123
1,035
993
958
945
934
898
THE FASTEST
Company
Eicher Motors
Bajaj Finance
Supreme Inds
Amara Raja Batteries
Page Industries
IndusInd Bank
HCL Technologies
Aurobindo Pharma
Havells India
Ipca Labs
5-Year
Price
CAGR (%)
94
93
88
84
78
73
69
68
67
67
THE MOST CONSISTENT
Company
Kotak Mahindra
Asian Paints
Sun Pharma
Hindustan Zinc
ITC
Axis Bank
HDFC Bank
M&M
Bosch
Nestle India
Appeared
in WC
Study (x)
10
10
10
10
10
10
10
10
10
10
2004-14
Price
CAGR (%)
34
34
33
29
26
26
26
24
23
23
13 December 2014 1
(Raamdeo@MotilalOswal.com)
Raamdeo Agrawal
/
Shrinath Mithanthaya
(ShrinathM@MotilalOswal.com)
We thank Mr Dhruv Mehta (Dhruv.Mehta@dhruvmehta.in), Investment Consultant, for his invaluable contribution to this report.