Actionable Insights : SMEs are overvalued, overhyped, operator driven...
✍️ Actionable Insights : SMEs are overvalued, overhyped, operator driven, manipulation are rampant in SMEs, they are as risky as investing in start-ups. In spite of all these SME stocks has historically delivered highest returns in last 1 year, last 3 years, last 5 years and well even in last decade as compared to any sector, any industry, any index whatsoever.
👉 Remember that, in life or in business you get max returns from something which carry maximum risk. SMEs are window of unseen opportunities, variety of companies getting listed via SME, entrepreneurs doing creative work raising funds thru IPO was never easy, thanks to merchant bankers who are bringing opportunities to invest in a tiny company with immense potential, so far only PE or VC or Angel investors use to get opportunities to invest in start-ups but now public are getting test of it via exchange regulated sme companies which will be the next Infosys, next HDFC or next Titan etc.
👉 Coming back to the "risk involved" in investing in sme. Risk is defined as an ignorance, if you don't know what you are doing, you are in risk, if you have not prepared for something beforehand, you are carrying some kind of risk. You will be able to mitigate the risk by doing in-depth research that is what we do over here.
👉 All future winners in next 5 to 10 years will start their journey from being SME, just note down my words. This is because India is getting into the phase where dominance of large cap or midcaps will be challenged by micro and small cap companies (gone are the days of film stars, actors or celebrities, it's common guy next door as youtuber or Instagram influencer are the star for our young generation) and many little known SMEs will become multifold. So if you are looking for a 50 or 100 bagger, SME are the right place for you to start.
Happy Investing!!!