The market veteran said that well-known investors including Warren Buffett made the largest chunk of money from a concentrated portfolio of good companies though they also diversified to protect their wealth.
At the CNBC-TV18 Global Leadership Summit, Ashishkumar Chauhan, Raamdeo Agrawal, Ramesh Damani and Manish Chokhani shared their lessons with investors, and resoundingly echoed the huge potential of the India story.
Backing the right businesses is important, however, one should be careful with the price that it pays for the company, said Manish Chokhani, director of Enam Holding
Chokhani said, 'Today, these small and mid-cap companies are in a cyclical upturn where you're making 50-60% compounded returns for a year or two, and then you fall back'
Manish Chokhani said given the massive upcycle that has been underway in equities, most stocks will do well. He adviced investors to stay away from any FOMO building up and not get greedy.
To guard against any turmoil in the shares in broader market, Manish Chokhani adviced investors to avoid too much concentration in smallcaps.