10 Stocks That Might Give You Profit During Second Wave
The stock markets soared over 80% from the lows of March 2020 to the end of FY21. Despite a pandemic, the upward trend in momentum has been a relief. With the fears of a second wave, interest rates are already at rock bottom, investors should look for stocks that are more resilient and can withstand difficult times if things start moving from bad to worse.
A basket approach with a diversified mix of sound-quality stocks can help absorb the short-term losses and provide sound risk-adjusted returns. You should let your profits ride and not cut them short unless in need of liquidity. As Warren Buffett rightly says, “When we own portions of outstanding businesses with outstanding managements, our favourite holding period is forever.”
Here’s the key to invest considering the scenario, focus on companies with efficient leverage, higher operating and free cash flows, strong cash conversion cycle and robust track record of ROEs and ROCEs.
The stocks listed below – if bought in a basket approach and kept for the long term – can make healthy returns for an investor.
1. Larsen & Toubro
2. Dr Reddy’s
3. Dr Lal Pathlabs
4. Vinati Organics
5. Pidilite Ltd
7. Kotak Mahindra Bank
8. HDFC Ltd
9. SBI Life Insurance
A basket of 10 fundamentally sound stocks could do the trick in making wealth in the long term. As Philip Fisher says, “Usually a long list of securities is not a sign of the brilliant investor, but of one who is unsure of himself.”