Now, Exponential Profits hasn't had a single recommendation closed at a loss for more than 2 years now.
Yes, that's right.

We've closed 29 penny stock recommendations since January 2020 and every single one of them at a profit.

The gains have ranged from as low as 22% in 11 months to as high as 177% in one year.

How much of this is luck and how much can be down to skill?

Did we really get lucky in Exponential Profits or was there some process we followed to deliver consistently good returns over the long term?

Well, I would say it is a mix of both. But to be honest, it was more skill or process that led to this outcome than just luck.

For example, back in March 2020 when the index cratered close to 40%, the Exponential Profits corpus was sitting on cash of 70%.

Yes, we had as much as 70% of the corpus parked in FDs. That the market crashed 40% in a few days was of course luck. But our 70% allocation to FDs wasn't. It was a part of a well thought action plan and strategy.

You see, there are good times to invest in penny stocks and there are bad times.

If you happen to invest in them at a good time, then even an average looking penny stock can end up giving you multibagger returns.

Consider stocks like Precision Camshafts, Tamilnadu Petroproducts, NCC, KCP Sugar, and NBCC. These penny stocks can be considered average at best. None of them are tom-tommed by analysts or hit the headlines on a regular basis.

Yet, they gave returns of 177%, 175%, 170%, 130%, and 109% respectively, with an average holding period of less than a year.

The reason they ended up performing so well was because I recommended them at the right time.

You see, a good time to invest in penny stocks is not when the entire world is going ga-ga over them. In fact, it's when people are fearful and don't like to go anywhere near them.

This was certainly the case back in March 2020. People feared taking exposure in even bluechips let alone penny stocks.

But we saw this as one of the best opportunities in years.

Investors were right in being wary of penny stocks with high leverage and in weak competitive positions. But fear regarding a fundamentally decent penny stocks trading at extremely attractive valuations made no sense to us.
Source: NDTV