Investing by Age
Given above is the list of 30 companies on BSE Sensex Index maintained by Bombay Stock Exchange.
If we do the age profiling of these companies based on year of incorporation we see the following:
So, the newest kid on the block is Bajaj Finserv incorporated in 2007.
We have two companies which are more than a 100 year old.
- Tata Steel
- ITC
Now, why are we doing this analysis?
Well as they say that equity investment is for long term, so we must invest in the companies which are going to survive in the long term.
If we look at the BSE Sensex in 1986, only eight companies which featured in the index then are currently featuring in the index.
The companies are:
- Nestle India
- HUL
- ITC
- Reliance Industries
- L&T
- M&M
- Tata Motors
- Tata Steel
So, we can fairly say that these companies have not only survived but have managed to do well in their business operations over a period of about 40 years.
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