What if the prospects are GOOD, But the operating history is not Good. Like in the next five years E-Commerce Sector is supposed to perform Good. Maybe the Education industry and Defense will also be performing Good. But if you invest in A company that doesn’t have an excellent operating history. Then what?
Say you want to invest in E-Commerce in India. (If you are VC and PE, they never think about it. But still) which company do you choose? Flipkart, Amazon, or Shopclues?
Let’s take the example of IBM. The company with a significant history. They survive after many bear and bull markets. The Business is tried and tested.
MacDonald. When there were questions about future growth, they successfully handled them. In India, HDFCBANK, INFOSYS, and CIPLA are good examples.
If the company has long operating history, the possibility of success in the Future is also High.
