Focus on companies facing the consumer

Pick those that have consistently maintained high return on equity

The Motilal Oswal Annual Wealth Creation Study always offers interesting insights. The study provides lists of the top ten wealth creators in the last five years, the most consistent wealth creators, the fastest wealth creators, biggest wealth destroyers etc.

There are several takeaways for the long-term investor. One is that the most consistent wealth creators since 2008 are all consumer-facing companies. That list includes Titan, Godrej Consumer, Shree Cement, Pidilite, Maruti, Marico, Asian Paints, HDFC Bank, Kotak Mahindra Bank, and Dabur. There are a few classic cyclicals (Maruti Suzuki, Shree Cement), two banks focussed on retail, FMCGs like Godrej Consumer, Dabur