UCs are very beautiful. But, both as a doctor and a value investor, I am a very strong advocate of ‘Safety’.
Profits are all “Virtual” until booked!
So, how to make money in UC Stocks
(A rough guide - thumb’s rule) -
4. Exception to Rule 3-can be when there is massive valuation gap-e.g. my recent pick,Titan Bio suggested at 73. Now it’s still trading at 4 odd PE.Hence, you can review on a case by case basis,& in these cases at every 100%...
5. Rare cases-Exception to even Rule 4,when there is a concrete story and your conviction in what the company is going to become is so high,that you hold on for as long as it takes for the company to get there. In short, if these are...
By & large Rule 3 is to be followed taking PE support (either TTM or forward) as a guide with obvious exceptions (Rules 4,5).