L&T did not perform for 10 years, HUL did not perform for 10 years than outperformed for 4 years and now in same league. Valuations are high PE 50-80 and it is said that they are destined to get this PE. No doubt that they are portfolio stocks but seeing all stocks rising 3X, 4X and your not moving gives lot of pain.
I have adopted a strategy of rotation and that has worked very well till now. Staying away from PE above 50 and less than 5. Finding cycles in phase 1 or entering phase 2, churning 40% of Portfolio and keeping 60% high conviction bets where more than 20% growth is visible atleast for 3-4 years.
Its like spring concept, in bull markets try to stretch your spring as far as you can by any means, trade, Small cap, large cap, sniff trades, that will help you during bear markets when spring gets contracted and every stock goes down as market can justify PE of 60 and PE of 20 for same stock, its all about us(human phycology)
| Subscribe To Our Free Newsletter |
