Richa Agarwal's
Top 3 Stocks for 2023

**Important: We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
**By submitting your email address, you also sign up for Profit Hunter, a Free-for-life newsletter from Equitymaster,
which offers the most profitable investing ideas in India.


The Must Have Stocks in India's 75th Year of Independence

Aug 16, 2022

The month was October 1973. It was Yom Kippur, one of the holiest days in Judaism and a national holiday.

A coalition of Arab states led by Egypt and Syria launched a surprise attack on Israel. Naturally, Israel was caught on the back foot.

It came to be known as Yom Kippur war. A war that changed the defence landscape in Israel forever.

The Soviet-supplied missiles used by the Arab took a heavy toll on Israel. Particularly the Russian self-propelled, low-to-medium altitude, surface-to-air missiles dealt a huge blow. It is widely acknowledged that the Israelis suffered heavy losses during this war.

Legendary investor Jim Rogers was then watching the geopolitical developments closely. So, when it was reported that some of Israel's military technology was obsolete, a thought struck him.

It was the United States that had supplied most of the weapons to Israel!

That meant the American defence technology was well behind the Russian. And that the Pentagon would have to spend billions to catch up.

--- Advertisement ---
"My Top 3 Stock Picks for 2023"

Good News for you!

I have zeroed in on my top 3 stocks for 2023.

On September 30th at 5pm, I'm revealing the details only to a selected few readers of Equitymaster at my upcoming MEGA summit.

If you'd be interested, use this link to save your spot asap.

Save Your Spot

Remember this was also a time when the Vietnam war was coming to an end. So, the US spending more on defence seemed like a farfetched idea. Most investors believed spending on defense would be dramatically curtailed.

Also, US defense firms were then not on solid ground back then. They were considered pariahs by the market.

Stocks of American defence giants like Lockheed Martin, Northrop Grumman etc were trading at a huge discount.

Jim Rogers, though, wasn't convinced. He believed a massive modernisation of the American defence forces was inevitable. He travelled to Washington to converse with Pentagon officials and defense contractors across America.

He also figured out that the modern battlefield was fundamentally changing. That the new arsenal would be sensors, laser-directed artillery shells and smart bombs. And all of these would need massive investments.

Rogers firmly believed it would only be a matter of time before defence spending took a dramatic upswing. His assumptions were bang on.

After all, which country would want to compromise on its border security and defence?

So, Rogers started buying US defence stocks when they were cheap. Soon enough, US President Ronald Reagan initiated a programme to revitalise US defence forces. The spending was not to be financed with tax increases but with borrowings.

As a lesson from the Yom Kippur war, the US began to develop radar stealth technology. Israel too, started investing in its own defence technologies. Rogers' investments in defence stocks turnout to be among his career's best.

Now, in her 75th year of independence, India is making its mark at a global level in almost every field. India was the first nation in the world to reach Mars in its first attempt.

India's HDFC bank is now bigger than the giants like Citigroup, HSBC, and Switzerland's UBS.

India supplied more than 244 m Covid-19 vaccines to over 101 countries.

So, can India afford to stay at the mercy of US and Russia to defend herself from hostile neighbours, China and Pakistan?

Certainly not!

So, the government has already taken a giant leap by banning a majority of the defence imports. Defence companies in India are upping them game with technology tie-ups.

Space agencies, startups and MNC defence majors are all partnering with India in the defence evolution.

Can you then afford to ignore the leading Indian defence stocks in such a crucial year?

At your own peril.

Watch this space...

Warm regards,

Tanushree Banerjee
Tanushree Banerjee
Editor, StockSelect
Equitymaster Agora Research Private Limited (Research Analyst)

Recent Articles

Investing in the Stock Market to Get Rich? Don't Do This... September 23, 2022
There cannot be a smarter way to allocate capital to stocks than long term investing.
Don't Buy EV Stocks. Do This Instead to Profit from the EV Boom September 22, 2022
The safest way to play the EV story is via this sector. Read all about it...
Buy Now Pay Later Stocks: A Pin for the Next Bubble September 21, 2022
The trend of BNPL is so lucrative and fast growing that even large entities, remotely connected to offering credit, are taking to it.
One Long-Term Investing Theme to Find Multibagger Stocks September 20, 2022
Indian economy is in a nascent stage of a capex revival. The last time this happened, the stock markets saw a multi-year bull run.

Equitymaster requests your view! Post a comment on "The Must Have Stocks in India's 75th Year of Independence". Click here!