@Iamsamirarora Even if one had invested when Infosys valuations' were at its peak, one would have still made index-par returns in hindsight

More from ContrarianEPS

ContrarianEPS
@contrarianEPS

Charles Kindleberger: “There is nothing as disturbing to one’s well-being and judgment as to see a friend get rich”

ContrarianEPS
@contrarianEPS

https://t.co/POf90ZS0Zf

if John Templeton were Indian:

\u201cBull markets are born on pessimism, grow on skepticism, mature on optimism and die on Motilal Oswal buy call.\u201d (broker mosl)
— ContrarianEPS (@contrarianEPS) May 3, 2019

ContrarianEPS
@contrarianEPS

all investors must honestly compute their last 3 & 5 y return.
if it is less than even fd return, hire an advisor or sip in index/ mf.

Losing money on free tips is okay.

But buying an investment book worth Rs. 500/- is a waste of money.

Random observation \U0001f937\u200d\u2640\ufe0f
— Vivek (@Vivek_Investor) June 10, 2021

https://t.co/6FLAcqgKzc

ContrarianEPS
@contrarianEPS

Judging a hyper-growth stock by what it can become someday is like astrology.

It's too random to be useful.

Judging a hyper-growth stock by its P/E ratio is like judging a 7-year old by their SAT score.

It's too soon for the number to be useful.
— Brian Feroldi (@BrianFeroldi) November 23, 2021

ContrarianEPS
@contrarianEPS

think different

src: intelligent investor

More from Valuation

Sajal Kapoor
@unseenvalue

When a stock is trading around 15-20x sales - ask why would an accident not happen? What could be the valuations damage in that case?

Omar Abdel-Maged
@oabdelmaged1

In @HowardMarksBook's memo early this year, one key thing I realized is how wrong I was to dismiss some businesses because I thought they were overvalued simply after looking at the P/E, P/S ratio etc.

You can't determine a business is overvalued without knowing the in-depth qualitative fundamentals of the business, because otherwise where is your edge? Anyone in the world can simply look at a company's P/E ratio.

I know this seems obvious, but so many people on fintwit are very guilty of this - myself included.

Unless I really know and understand a business, even if it has a seemingly absurd P/E or P/S ratio, I will refrain from concluding it is overvalued. It's just lazy and wrong.

The weird thing about this is that when I'm normally researching a business, I totally understand this about valuation and do in-depth research and determine if it's undervalued. But then I'm quickly dismissive of a tech company that trades at 50x earnings and say it's overvalued

D.Muthukrishnan
@dmuthuk

Good time to buy is when a theme or segment is ignored by the market and not when it is popular.

When you buy what is popular when it is popular, need to forego returns for few years.

$Mungerisms \u2022 Charlie Munger Bot$

Mungerisms • Charlie M...
@CharlieBot

In those days, working capital belonged to the shareholders.

If the employees were no longer useful, you just sacked them all, took the working capital, and stuck it in the owners' pockets.

That was the way capitalism worked

Nowadays, of course, the accounting is not realistic

Mokaya Erick
@ekmokaya

Fresh out of the @mjmauboussin oven is a paper titled "The Impact of Intangibles on Base Rates"

Key finding: Companies with higher intangibles asset intensity tend to have higher growth rates. The dispersion in growth rates is also higher for them.

Link: https://t.co/0u1dk0h0UK

"The good news is that intangible-intensive companies can grow faster than their tangible counterparts. The bad news is they can also become irrelevant and shrink fast. As a consequence, we should see two effects in the data: higher growth and more dispersion in the outcomes."

And here they are...

THE WINNERS OF THE 24 HOUR STARTUP CHALLENGE

Remember, this money is just fun. If you launched a product (or even attempted a launch) - you did something worth MUCH more than $1,000.

#24hrstartup

The winners 👇

#10

Lattes For Change - Skip a latte and save a life.

https://t.co/M75RAirZzs

@frantzfries built a platform where you can see how skipping your morning latte could do for the world.

A great product for a great cause.

Congrats Chris on winning $250!

#9

Instaland - Create amazing landing pages for your followers.

https://t.co/5KkveJTAsy

A team project! @bpmct and @BaileyPumfleet built a tool for social media influencers to create simple "swipe up" landing pages for followers.

Really impressive for 24 hours. Congrats!

#8

SayHenlo - Chat without distractions

https://t.co/og0B7gmkW6

Built by @DaltonEdwards, it's a platform for combatting conversation overload. This product was also coded exclusively from an iPad 😲

Dalton is a beast. I'm so excited he placed in the top 10.

#7

CoderStory - Learn to code from developers across the globe!

https://t.co/86Ay6nF4AY

Built by @jesswallaceuk, the project is focused on highlighting the experience of developers and people learning to code.

I wish this existed when I learned to code! Congrats on $250!!