It is an essential in all market conditions, but more so when there is volatility and high valuations. It is a minor thing, but it helps investors not only earn better returns, but also deal with bearish markets better. This simple but essential thing is “reason”. You need to have a sound reason for buying a stock and owning the underlying business. The reason could be any. Because a company is in a business where the chances of a competitor coming is next to none as there is space for only two players in that industry. Or because a company has successfully negotiated a debt situation and also owns some of the strongest brands in the FMCG space. Whatever it is, having a reason is a must when you put hard-earned money into equity.
