Investors fight shy of expensive stocks for fear they might, over time, only trend down. Hence, they look to buy stocks which are trading at a lower price. While this may be the rule of thumb, there are, however, scrips which have given handsome returns to investors who risked investing in them at a higher price.
Moneycontrol carried out a study to unearth stocks whose returns were two-fold over a three-year period. For this purpose, we considered stocks which were trading above Rs 6,000 in 2014. We ended up with 6 stocks, all of which gave double the returns.
Rasoi, for example, rose by 532 percent in the period under question. Others include Eicher Motors, Bosch, MRF, Shree Cement and Page Industries.
In two stocks – MRF and Shree Cements – foreign institutional investors (FIIs) have continued to increase their holdings.