I’m replying to your @ here as my posts in other threads go for moderation.
I have written my thoughts & dilemmas & wavering entries & exists here so there’s not much I can add. Let me provide some qualitative points if you find it helpful –
I have vested interest only in Nykaa, PB, Delhivery.
Zomato – Post Blinkit acquisition, I’m not interested in the story.
Paytm – This is jack of all & master of none. Was never interested. The current correction though seems irrational. Also, VSS cross holdings in Paytm payments bank instead of Paytm & many other corporate inconveniences, competition kept me away.
Consider these while buying:
- Pain tolerance level
- Draw down tolerance
- Patience
- Holding period
- Ego level
- Biases
- Portfolio allocation
- Exit criteria
- Return expectations
- Your age
- Differentiate b/w Noise vs. Voice
- Opportunity cost
Remember, EV/Sales comparison is not straightforward. For example, the steady state margins of PB will be much higher than Nykaa. So, cross industry EV/Sales is not recommended.
Instead, compare Delhivery vs. UPS vs. Fedex and decide what premium you want to accord for growth, opportunity size & other metrics.
You made good points in your post. Keep digging & learning. Don’t fall for media headlines – most authors hardly have any investing experience, twitter posts for acquiring likes.
After steep corrections, the stocks actually go for a deep slumber. So, opportunity cost is involved. If you think there will be quick recovery, have a coherent reason why?
Take care!
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