My richdreamz portfolio – visit my portfolio to learn together!

I have to write this, I will be laconic to have an impact.

My personal observations of the market:

1. Both tennis balls & eggs have fallen to a similar extent, time to replace eggs. I know there will be holding bias, which I too have, but be as impartial & unemotional as possible.

2. Small & micro caps are always CASE by CASE investing & RISK:REWARD analysis & CONSTANT monitoring. There should be a lot of EXPERIENCE & VISION for concentrated investing in small & micro caps.

3. There is a lot of froth/ pessimism in some sections, possibly, due to excessive social media marketing/ dissing.

Example: Eicher motors (not holding as of now, just as an example). With long term growth of 12% conservatively, a super brand, 25% plus margins, 6000 crore cash on books, continuous dividends, international presence & execution, 25% RoE, top class corporate governance, OEM (cyclical though), superb management & what not is available at 23 times forward PE while a commodity processor/ ultra low margin sectors prone to very high competition etc. with short term 25% growth are trading at 35 times PE.

Valuations always come back to long term growth not short term blip. Please keep this in mind. I gave back profits many times by ignoring this.

Be patient with long term holdings & brutal with all others.

Disclosure: I’m not an RIA & this is not a financial advice at all. Stocks quoted (Eicher) are not recommendations but written to drive a point/ my current thoughts. This thread of mine is a log of my maturity level as I age & my readings of Mr. Market.