@babuchit
When the PE becomes half the CAGR difference will be -7%
Whereas when the PE doubles the CAGR difference is not +7% but more than that ~+9%.
If you invest in any Index fund you can expect 12 to 15 % CAGR year on year. The Question is how much more you can generate beyond those 12 to 15% CAGR, for that Valuation matters and entering and exiting at the optimum PE matters
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