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If you have kids (or even if you don't) you have likely watched all these animated movies. Some deep lessons sprinkled in these are worthy of thought.

Do you have a favorite line or a favorite movie?

Some of my favourite quotes:
1. “When the world turns its back on you, you turn your back on the world." - Timon, from The Lion King
2. "When life gets you down, you know what you gotta do? Just keep swimming." — Dory, from Finding Nemo
3. “The past can hurt. But the way I see it, you can either run from it or learn from it.” - Rafiki, from the Lion King
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Post on #Nifty 500 valuations wrt to its own history.

Why Nifty 500 and not Nifty50?

1) Because Nifty500 represents >95% mkt cap of India

2) Doesn't suffer from historical composition bias

As of 31st Dec20, the index has following statistical data.
Without adjustments the index on 31st Dec trading at PE of 43x / PB of 3.7x / Div Yield of 1.2%. Assuming a normal curve there represents following percentiles 100% (PE), 87% (PB) , 77% (Div Yield)

However earnings are depressed because of Covid. Current implied EPS is at ~265.
During Dec'19 the implied EPS was ~330. Assuming the same today the PE is at 34x ( 99%ile!!). Say the best case scenario that normalized EPS is 400 area, the PE would still be 29x (or 93%ile).

Clearly basis last 25 yr history markets today is top 5%-10% most expensive.
Read 4 tweets

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