As a long-term investor, we choose the sector and then study 3 to 4 top companies. we wanted to buy the best company. but the best company is overvalued. there are 3 to 4 companies in the sector which also means there is no moat in that sector.
Assume AMC sector. only 6% of of indian population submit tax. huge run way ahead for amc business. you might want to buy hdfcamc or nippon amc. but uti amc is at 15PE and at 5% dividend yield.
kindly share your experiences in picking another stock just because of the valuations. so basically the stock chooses you more than you chose the stock. whats you learnings on this ?
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