Investors should take heart from multibagger Strides Arcolab

The recent carnage in many midcap and small cap stocks has left many investors scarred and bitter.

There are reports of investors getting heart attacks and in some tragic cases, some have even committed suicide.

Investors should take heart from the example of Strides Arcolab.

On 2 March, 2009, this company was trading at Rs.65.Like most stocks at that time, the valuations were quite depressed.

Fast forward 4 years later, yesterday (aka 28 Feb,2013) it closed at Rs.922.

So it went up by 14 times in the last 4 years !

Today, there are reports of Strides Arcolab selling its drug injection business for 9000 Crores to Mylan.On 2 March, 2009, the market cap of the entire company was selling for 260 Crores !

So if any stocks in your portfolio are quoting at low valuations, take heart.If the business is doing ok, the valuations will eventually reflect that.

As Warren Buffett says “In the short run, the market is a voting machine.In the long run, it is a weighing machine.”