Stock-selection impacts the money you make in the market. Consider this: Suppose you bought Infosys on March 8, 2000, the day the dotcom boom peaked. Suppose you held the stock through the subsequent market crash. Adjusted for bonus and dividend, the stock returned to the March 8, 2000, level only by the end of 2005. Your situation would have been far worse had you bought other IT stocks. Wipro took over 15 years to recover. And don’t even ask about the fate of others. Some, like Satyam, just vanished. The lesson: When a sector is witnessing a bull run, it is important to be selective from many perspectives. And management ability tops the list.
