How to Identify High Return Stocks with Patience & Discipline with Sudheer Mahajan

Sudheer Mahajan emphasizes the importance of patience in investing , reflecting on missed opportunities and the significance of holding onto positions for better outcomes. He shares insights on building large positions in stocks by identifying companies poised for growth and emphasizes the need for conviction and patience. Additionally, Mahajan discusses the importance of staying unbiased when investing, learning from past mistakes, and properly managing leverage.

He highlights the necessity of focusing on the direction of stocks, judging management based on performance, and identifies industries with growth potential. Mahajan also reflects on R&D expenses, exiting stocks strategically, and learning from costly mistakes to maximize returns. Overall, the conversation underscores the value of patience, thorough research, and maintaining a clear investment framework in the world of investing.

Sudhir Mahajan explains how holding onto a position over the years can lead to better outcomes, emphasizing the need to let investments unfold and not be swayed by the temptation to sell too soon. Mahajan reflects on missed opportunities and the lesson he learned about the significance of patience in the investment journey. He also discusses their approach to building large positions in stocks, using the example of amines market in India.

In this video the importance of identifying companies that have recently completed an expansion and are poised for growth, like Balaji Amines has also been discussed. The speaker emphasizes the need for conviction and patience, citing their experience with Garware Wall Ropes and Rain Industries where they held onto their positions despite initial slow movements leading to significant gains later on. Their strategy involves researching market potential, meeting with company management, and gradually building their position over time to maximize returns.

Sudheer Mahajan also discusses the importance of properly accounting for research and development (R&D) expenses, highlighting one company that expensed their R&D costs over 10 years, showcasing good management practices. He also praises a notable individual who has contributed significantly to the country through various technological advancements and shares insights on when to exit a stock, emphasizing the importance of evaluating potential growth opportunities and making strategic decisions to maintain a balanced portfolio. Mahajan emphasizes the simplicity of his investment philosophy, focusing on identifying companies with strong growth potential and eliminating underperforming stocks to maximize returns