Wednesday, 12 January 2011

Supreme Industries - A strong company (both fundamentally and technically)

Supreme Industries is a very large part of my portfolio. A few weeks back someone I was discussing stocks with asked me why. We discussed the fundamental story for Supreme. But there is another reason why I hold such a large percentage in my portfolio. If you look at the last six months chart, you will realize that the stock touched 165 before its split and has subsequently been consolidating. It does not move down with the Index which provides great comfort. And this has been true in previous minor market corrections also. It simply moves in a very small range but refuses to go down substantially. You need some stocks like these in your portfolio to cushion market movements.

1 comment:

  1. You are very bullish on Supreme Ind right from the start and for good reasons, I agree. But now that it is at already at Rs. 150+, 5-times it's Book Value and close to it's 52-week high (169), what other stocks would be good to have, which would behave like Supreme in the medium/long term?

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