Its Over, page-9083

My strategy all along has been to invest in equities in an underweighted fashion but only in stocks that stand a chance in delivering supernormal returns and being bagger potentials.

Assuming you have 30pc weight in equities and equally allocated to 5 stocks and well chosen of course. And if you get one 2 bagger and 5 others at 10pc return, your overall return would be 14.4pc assuming 70pc cash earns nothing. That 14.4pc can be earned in under a year if conditions are right and timed well. 14pc return with just 30pc equity exposure is not risking much and provides a decent return but there lies in the importance of the bagger.

So let's go and find some baggers.

The first thing to know is knowing the sectors that provide bags.

Over the 12 months, the top 20 performing stocks delivered between 280pc to 712pc. And guess WHAT? 16 out of those 20 come from resource stocks and the 4 are biotechs.

Now you know why I am focussed on resource stocks especially those with locality advantages and technology differentiation. And none of those bagger resource stocks are major resource companies or blue chips, none from financials, none from energy.

Baggers come largely from discovery stocks, metal discovery or drug discovery.