@avneesh
I understand that your question wasn’t intended for me. But, I thought I must share my views. I apologise if I’ve overstepped my bounds. As you rightly said,paying the wrong price for a right business is a recipe for disaster. I personally, am an admirer of the Dremanian investing strategy which advocates selection of low PE multiple, BV multiple, price to dividend, price to cash flow stocks. Also, buying stocks in which growth is available for a reasonable price.
Sometimes, we investors, build unsustainable expectations in the price of a business and justify the premium as a premium for quality. But, it’s pertinent to note that most businesses are strictly ordinary. We construct a coherent story in our mind to rationalise those irrational valuations. I’m fairly certain, that most seemingly top class businesses today will struggle to give returns because their current price has built in years and years of consistent, perfect growth.
Yet again, I didn’t mean to pollute the thread.
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