Most investors consider the consistent rise in share price as proxy for safety. Often not true! .

A K Asnani
About This Quote

The key word in the above quote is “consistent”. Consistency of rise in share price is an excellent indicator for safety of a company. It shows that the shares of the company are not linked to any external factors and they will rise or fall as per its business or earnings pattern. However, it does not mean that there is no volatility associated with the stock.

The stock price can go up and down more than once during a day. However, if it stays over a period of months and years, it will be considered as a safe investment.

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