Keep The Faith

So, the assembly elections are over in the 5 states and the results are out, there was consensus that Rajasthan would not re-elect the ruling government and other two states namely MP and Chhattisgarh would see BJP winning back but what is the actual outcome? – BJP loses all three large states.

Fear of markets going down because of election results was keeping investors cautious and on sidelines, but the theory was un-founded because markets are actually up post-election results. We have to understand markets and elections outcomes are difficult to predict and usually they tend to outsmart us. We must understand investing for long term in equities is all about holding on to companies which deliver superior earnings growth through outstanding business models run by great managements in long run. Quality coupled with longevity of earnings is of prime importance in order to build wealth. Yes, at best try and buy more when markets are down and less when markets are high – but keep buying at all times as long you have investible surplus and risk appetite for equities as an asset class.