I dont understand why people are running behind stocks at 50+PEs. Even if everything happenes as per plan what small investors gets , just fairytail ride.
Prices goes up and something wrong happens it corrects 50 ,60% or more.
Than why one should not looking at companies like PSU banking portfolios or Some state run NBFCs like REC ,PFC or many more.
For instance Canara bank available at <5 pe. If india story grows then this bank will definitely grows. And next dividend cycle will be much more than previous ones. Due to govt policy on psu’s.
And if u checks technically its also at the hotspot. Its moving above 3yr highs.
Many such stocks available with very safe and extremely lucrative story.
I am now trying to follow both fundamentals and technicals. Hitesh bhai is true guide thanks

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L-1957

Warren Buffett In his 1957 letter, emphasized the importance of comparing the partnership’s returns to the Dow Jones Industrial Average (DJIA) rather than the absolute return. The three partnerships Mr. Buffett managed showed different returns due to the varying times and market levels when the funds became available for investment. However, all three outperformed the DJIA. Mr. Buffett went on to outline his investment philosophy, which centered on long-term value and seeking out undervalued securities.

Mr. Buffett emphasizes patience in waiting for the right investment opportunities and holding onto securities for extended periods if they are believed to be undervalued. This approach can help investors avoid making impulsive decisions based on short-term market fluctuations and focus on the intrinsic value of companies.

Buffett talks about asset allocation between “work-outs” and “general issues”, and specifically how the decline in the market that year adjusted this balance.

Key-Terms (Explanation for work-outs & general issues)

Work-outs are nothing but “event-driven” strategies. These strategies involve making investment decisions based on specific events that could impact a company’s stock price, such as sales, mergers, liquidations, tenders, etc. Investors assess the potential impact and likelihood of these events to find undervalued opportunities and make profits when the events happen as expected.

General issues refer to investments in normal stocks that are simply undervalued. Price increases over time would happen as a result of investors gradually realizing that the stock is undervalued, driving up prices.

The most important part of Mr. Buffett’s 1957 letter was his discussion on asset allocation between work-outs and general issues. He mentioned that in an overvalued market, his allocation would tend towards work-outs because such strategies would work in any market as they depend less on overall market trends and more on specific events (which is less likely to happen in an overvalued market). Conversely, in an undervalued market or one that trends down, his allocation would be towards general issues, as more and more opportunities in undervalued stocks would become available.

Asset allocation continues to be a crucial element of modern investment strategies. It involves gaining a deep understanding of market valuations and trends while navigating the diverse landscape of multiple asset classes across different industries and geographical regions.

The Oracle of Omaha, Warren Buffett, is considered the greatest investor of all time. His letters to shareholders have guided countless investors to financial success over the years.

I have been reading one letter a week and I’m sharing the summary of each letter in this thread, year-wise.

[I’ll try uploading 1-2 every week]

Although this thread is very detailed, I highly recommend that you read the original letters. I have also shared the link for the same.

This thread aims to serve as a helpful companion, highlighting key takeaways and lessons from the letters.

Links: Warren Buffett’s Annual Letter to Shareholders

1957-1976

1977-XXXX

Ahmedabad, September 11, 2023
Pace E-Commerce Ventures Limited, a multi-platform and print-on-demand
e-commerce player, announces the launch of its fashion & lifestyle
e-commerce platform – www.ostilos.com
Pace E-Commerce Ventures Limited announces the launch of Ostilos – www.ostilos.com – a groundbreaking
fashion & lifestyle e-commerce platform, offering a bold and empowering fashion experience for adults of all
genders. With a focus on self-expression, quality, and affordability, Ostilos is poised to reshape the way
individuals embrace style and lifestyle.
Ostilos stands at the intersection of fashion and self-confidence, embodying the spirit of individuality and
creative exploration. The platform prides itself on curating a collection of distinctive and chic pieces that
encourage wearers to experiment fearlessly with colors, prints, and graphics.
Commenting on this milestone, Shaival Gandhi, Managing Director, said:
“I am thrilled to announce the launch of yet another groundbreaking e-commerce portal from the house of Pace ECommerce Ventures. At the heart of our philosophy with Ostilos’ is the commitment to deliver premium quality fashion
which is accessible to all. The brand achieves this by combining impeccable craftsmanship with affordable prices.
I would like to think of our platform as more than an e-commerce destination. It’s a hub of self-discovery and
expression. By offering a range of thoughtfully designed pieces that blend creativity and quality, we aim to empower
individuals to make style their own.
Through our streamlined direct sourcing model and innovative manufacturing techniques including our efficient inhouse stitching unit, Ostilos eliminates unnecessary overhead costs, ensuring that customers receive exceptional
value without compromising on style or quality. Our approach to inventory management draws inspiration from the
renowned “just in time” methodology. By minimizing the stock of finished goods and producing clothing and
accessories based on customer orders, Ostilos effectively utilizes Pace’s stitching ecosystem to create a synergy
between demand and supply. This approach not only reduces waste but also draws synergy between Ostilos and
Pace’s other operational and upcoming e-commerce ventures.
As far as our other ambitious project goes, the Print-on-Demand (POD) e-commerce portal, along with the
manufacturing ecosystem and the design community behind it, is shaping up really well. We are on track to launch
this platform in the coming months. We have also officially decided on the brand – Wishrows – for our POD ecommerce portal.