The WeekendInvesting Newsletter - 19 Jan 2024

In a recent post, Charlie Bilello shared data on the best performing stocks in the S&P 500 universe over the past three decades.

The purpose of this data is to highlight the fact that most discretionary investors are unable to study and analyse all 500 stocks in the index. As individual investors, we are often limited to the stocks we know, have heard of, or those that have been recommended to us. This limited universe of stock selection may cause us to miss out on potential winners that are not widely known or discussed in the media.

The key takeaway is that . . . .

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In the world of finance and investing, benchmarking is a crucial tool for evaluating performance. It allows investors to compare the returns of their investments to a particular index or benchmark. The most commonly used benchmark in India is the Nifty 50, which includes the top 50 companies listed on the National Stock Exchange (NSE). However, there is another benchmark that might surprise you with its outperformance over the years – the Nifty Junior.

We analysed the performance of three indices: Nifty 50 (orange line), CNX 500 (dark blue line), and Nifty Junior or Nifty Next 50 (light blue line). The charts span over a period of 25 years, providing a comprehensive view of their historical performance. . . . .

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WeekendInvesting Daily Bytes

The market is showing resilience as it continues to perform strongly despite recent events. The broader market is making new highs, while the Nifty is relatively subdued. However, mid and small-cap stocks, particularly railway stocks, are experiencing significant growth.

The Nifty seems to have found good support at the level around 21,500, which is great news for investors. TCS and Infosys have performed well, and even ITC has shown gains.

Stocks that are defying gravity . . . .

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