SHOULD I SELL A STOCK WHICH IS GROWING- SINTEX

Sintex is a household name in India today. From selling water tanks to becoming the biggest plastics manufacturer in India, the company has taken off in a big way. Its sales have multiplied almost 14 times over the past ten years. Profits have done even better in multiplying around 28 times. And someone who had invested in the stock in December 1999 has already multiplied his money 36 times!

Now whether Sintex is a worthy investment now is not a matter of discussion here. What we are trying to point is that the right kind of small companies can help you generate tremendous wealth.

But only if you have patience! And stick with good quality stocks across market cycles.

You can learn this from an investor in Sintex in December 1999, who sold the stock after it tripled in December 2003. Since then, the stock has multiplied another 12 times!

So you may ask - should I never sell a stock, always expecting it to multiply several times?

Well, if the company continues to do well, the idea of selling it should not even enter you mind. As the legendary Warren Buffett says - "If the homework is done right while purchasing a stock, the time to sell it is never."