we recommend avoiding capital goods. there is a structural flaw in the way they conduct business.be greedy when others are fearful, be fearful when others are greedy.invest in the bear market and hold in the bull market.the stock market is a relocation center where money moves from the impatient to the patient. if we accept this, we need to pick stocks for a 10 year horizon. this is where only three stocks strike me which are franchises and which have an enduring brand value.
ril, pantaloon retail and educomp solutions.avoid diversification, pick 3-5 stocks, 10 stocks and we end up with a zoo.
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Siemens is fundamentally a sound company. It is just that in the over heated market of the recent past like most other stoks it had run ahead of all fundamentals. If India growth story has to be believed then you better stay invested in this stocks and others like LNT, Cairn, Bhel, ONGC, Welspun Gujarat, Tata Steel, Bharti, Idea, MTNL, ABB, Thermax as there will be great value from here on at the mouth watering valuations that they are available at presently. Please, avoid the RIL spokeperson Mr. Ravishankars recommendations as I feel all his mentions including RIL & Pantaloon lack fundamental depth and were just lucky in the liquidity heavy market. I am not too sure about educomp solutions either as it is too early to assess that space.