Long term investment in equity for wealth creation is just like a game of test cricket which requires a lot of patience and consistency. Some stocks have consistently performed over the last 10 years and created substantial wealth for investors making them ideal candidates to be known as best shares in the market.
Over the last 10 years, Indian equity markets have witnessed several ups and downs. While several well-known names like Reliance Power, Suzlon Energy, and Aban Offshore turned duds eroding investor wealth, few stocks outperformed by huge margin and can be definitely considered as the best shares in the market.
Let’s take a look at some of the best shares in the market.
From the above table, it is quite evident how the best shares in market have created consistent wealth for investors over the last 10 year period. While they come from different sectors such as cement, banking, and consumer goods sectors, what these best shares have in common is the fact that most of these companies are market leaders in their respective sectors or at least rank among the top 5 companies in the sector which they operate.
To understand why the above companies are the best shares in market let’s take a detailed look at some of these companies.
Take Maruti Suzuki India Ltd. for example which has given a return of 358% to investors in the last 10 years. An investment of Rs. 1,00,000 in Maruti Suzuki stock would have turned to Rs. 4,58,006 as on the current date. It has been the undisputed market leader in the passenger car segment in India for several decades now. The reason why Maruti Suzuki has managed to hold onto its no.1 position for years is the fact that it offers value for money products with unmatched service and reliability and has high brand recall value.
The stock of Titan has given a return of 1698% to investors in the last 10 years is a prominent company operating in India’s lifestyle goods sector. It is a leading player in multiple products such as jewellery, watches, and eyewear and offers several popular brands in these categories.
To summarize the reason these shares are called the best shares in market, because the companies behind these stock are exceptional companies. So when you are looking for best shares in market, keep legendry investor Peter Lynch’s quote in mind “Behind every stock is a company. Find out what its doing”.