whats your take on this
Predicting decade is very very long its will almost cover 2-3 market cycles, i don’t view any stock more than 3 years as currently cycles have become very small in time frame. All these comapnies have reached high stability and market usually won’t give high rerating where growth is stable. Maybe from capital protection point of view its alright.
Predicting the journey of a business is almost impossible even for the people who run it, as a lot of things change over the course of 10 years.
Although one thing that should be considered is the person who is saying this. For an experienced investor, who follows the business, having invested in a stock for 10 years is not a big thing, so he is confident about his picks, and if he does not expect multibaggers but decent CAGR, it can happen.
Often times people have the expectation of their pick becoming a multibagger, that is very hard, not some good CAGR, more so with established names with secular growth prospects, optionalities, with good dividend yield etc.
Marna (HDFC Life)
Some are commenting here that predicting business cycle for over 10 years difficult, thats why Mr. Muthu has choosen the unchangable life cycle.
Although there’s a risk of more taxes being levied on sin products eating up their margins or demand, these are good solid stocks (maybe Titan is bit costly, but nonetheless, extremely good company)