@suhas_iyengar you are mostly right in the sense that I am not very concerned about valuations (unless of course they are obscenely high or low).
Practical experience has taught me that valuations matter very little in a growth business and in a growth market like India. It starts mattering only when the growth starts faltering. That’s the reason you will find some stocks persisting at very high valuations for years.
@Dragon you are right. My main focus is always growth that is perceptible in the future. Don’t believe in hope stories. Don’t believe that low PE is value investing. In fact, in a market like India, absolute low PE typically means either the business is cyclical and the cycle is not playing out now or it means that there is something wrong with the business which needs to be carefully understood.
More money has been lost doing low PE and hope investing than probably anything else (except F&O probably).
The best option is usually to use common sense, buy good businesses with a growth trigger, demonstrated competence in delivery and reasonably good management.
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