Originally posted by kanagala
Here, i am trying to understand the PEG calculation. I guess, one has to consider the EPS achieved rather estimated EPS while calcuation PEG. As long as we keep enough margin of safety with respect to PEG, that should be ok.
|
Many times we investors keep looking at the margin of safety which is perfectly justified. But our margin of safety is perfectly correlated with somebody else's foolishness. That means why would someone agree to sell a Rs 1 merchandise for 50 paise?
So instead of trying to pin point on the MOS we investors could think at the approach a little differently. We can call it MOS with time. That means buy stocks that become cheap after each qwuarter. Ask yourself a question what if the stock price does not move for 1 year? Will it become cheap? If the answer is yes then do not wait for someoone to act foolish.
Active Topics
Memberlist
Calendar
Search
Help
Register
Login
IP Logged
