Patience is rewarded after some turbulence!

Yesterday I mentioned about Titan giving compounding returns over a long-term. But this patience was rewarded only after going through turbulence in the stock price and periods of zero returns (time correction). Even when the price of Titan fell from Rs.1,600 in 2008 to Rs.600 in 2009, investors had faith in the stock. One needs to understand that compounding returns come with their own set of baggage. Time correction (periods of zero returns) do keep happening. The stock of Reliance industries didn’t give any returns from Dec 2007 to June 2017, but post that gave stellar returns. The stock of Hindustan Unilever, India’s largest FMCG company gave zero returns from March 2002 to April 2010. But post that it gave spectacular returns.