
EquityAnalytica - Divyanshu Chaturvedi
February 6, 2025 at 04:45 AM
Don't average your poor-quality shares (companies with weak earnings) just because you see a slight uptrend in the market. The market will certainly bounce back in the future, but poor-quality shares will only go down, and if you average them, you'll end up losing your entire capital!
Example: In the 2008 uptrend, when the Sensex was at 20,000, someone who invested in JP Associates at ₹500, despite the Sensex rising to 70,000, ended up seeing the share price drop to ₹5 due to the company's massive debt.
This is the time to convert your poor-quality shares into good ones. Popular and well-known market experts will never tell you such things!
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