Below chart courtesy @abhishec_s
Observations (while limited data points)
1. Mcap/sales (0.5-2x)
2. Market discounts next 10 yrs. To make decent money on absurd starting P/E , 10 yrs hence , markets estimate of another 10 yrs should be rosy. Effectively 20yrs of performance.
Observations (while limited data points)
1. Mcap/sales (0.5-2x)
2. Market discounts next 10 yrs. To make decent money on absurd starting P/E , 10 yrs hence , markets estimate of another 10 yrs should be rosy. Effectively 20yrs of performance.
Dmart Investors - Assuming next 27 yrs is as good as walmart the returns will be 10.5% CAGR. Assuming 2x walmart CAGR is 13.4%
The best case scenario is medicore. or Head I loose, Tail I don't win much.
(This is inverted version of @MohnishPabrai saying)
The best case scenario is medicore. or Head I loose, Tail I don't win much.
(This is inverted version of @MohnishPabrai saying)
Not saying you can't make a lot of money in High P/E growth companies.
You can as long as you know when to exit!!
Someone who has done this successfully is @BMTheEquityDesk who exited in Pantaloons, Bharti Airtel, Page etc in time.
He might have already exited BajajF as well
You can as long as you know when to exit!!
Someone who has done this successfully is @BMTheEquityDesk who exited in Pantaloons, Bharti Airtel, Page etc in time.
He might have already exited BajajF as well
Buy and Hold, doesn't go with High PE investing. If you don't know when to exit stick to Index funds.
