Its a well known lesson in investing that Capital protection should have the higher priority over return on capital. We all talk about which stocks to bet on that can giver superior returns on investment, but it is equally important to know which stocks to avoid to prevent the risk of capital loss. Here is a selective list along with reason:
4. Other ADAG Companies - If Anil Ambani gets trapped in the 2G scam, the shares of all of his company will start correcting sharply. ADAG has a very bad history of shareholders wealth destruction. First RPOWER, then RNRL, then RCOM. So all of his companies should be avoided until some clarity and clear direction emerges for him and his companies.