The Journey of TANLA – A Lesson in Momentum Investing

This chart of TANLA tells an interesting story. The stock started around ₹200 in 2007-08, but by 2013, it had collapsed to just ₹2, a staggering 99% decline. Staying invested during such a long downtrend would have been disastrous.

Capturing the Right Trend

After languishing for years, the stock rallied sharply from ₹80 to ₹800 in a single year, a massive 10X move that most momentum strategies would have captured. However, after peaking at ₹2000 in 2022, it has already retraced to ₹400, and could go even lower.

Why Holding for Decades is Risky

If you had held this stock passively for 17 years, you would have seen almost no meaningful gains despite the extreme volatility. This is why momentum-based entries and exits matter. It’s about finding opportunities, riding them, and exiting before the trend reverses.

The Myth of Buy-and-Hold for Every Stock

Many investors get inspired by stories of long-term holdings in Bajaj Auto, HDFC Bank, or Reliance from 20-30 years ago. But for every success, there are thousands of failures like Unitech, JP Associates, India Bulls, and Yes Bank—once prominent stocks that failed to survive.

Focus on Opportunity, Not Just Storytelling

The market is about identifying trends and acting on them rather than believing that a handful of stocks will generate wealth forever. The goal should always be to spot the best opportunities, capitalize on them, and move on rather than being emotionally attached to any single stock.

WeekendInvesting launches – Portfolio Momentum Report

Momentum Score: See what percentage of your portfolio is in high vs. low momentum stocks, giving you a snapshot of its performance and health.

Weightage Skew: Discover if certain stocks are dominating your portfolio, affecting its performance and risk balance.

Why it matters
Weak momentum stocks can limit your gains, while high momentum stocks improve capital allocation, enhancing your chances of superior performance.