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Equity Valuation Techniques
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Message Icon Topic: Expensive stocks-What to do with them? Post Reply Post New Topic
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tyler_durden
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Quote tyler_durden Replybullet Posted: 25/Jun/2007 at 8:48pm
kulman ji's signature can summarise it well

"Life can only be understood backwards—but it must be lived forwards "
If you aren't fired with enthusiasm, you will be fired with enthusiasm.
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India_Bull
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Quote India_Bull Replybullet Posted: 25/Jun/2007 at 8:51pm
Kulmanjee is Gr8 !!
 
But someone from the Big boys club also have taken the rights to say this in their chatmasala show...
India_Bull forever Bull !
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kulman
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Quote kulman Replybullet Posted: 25/Jun/2007 at 9:28pm

Don't call me great, please...that was a borrowed quote anyway.

Here's one quote I read in my daughter's notebook:
 
Yesterday is a cancelled cheque, tomorrow is a promisory note; today is the only cash you have---so spend it wisely---Kay Lyons
 
 


Edited by kulman - 25/Jun/2007 at 9:28pm
Life can only be understood backwards—but it must be lived forwards
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Monkey
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Quote Monkey Replybullet Posted: 31/Oct/2010 at 10:30pm
 
This is interesting thread, lying idle for years.
 
As far as expensive stocks are concerned, I am comfortable to hold on to it and ride the growth story for long term. However, current price for the stock reflects high growth expectation for such highly valued stocks. Now, if the stock is not performing to such expectation, it will be quickly derated. If the premise of growth is wrong, this will result in permanent loss of capital which is not good for concentrated portfolio.
 
My query to Basantji and others is that - when stock price is coming down, how do you determine the reasons for the same - whether the growth story is not panning out as expected or whether it is normal corrections. (waiting for few quarters for validation will not work as damage would have been done by that time if story is not panning out as expected).
 
 
 
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Circuit
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Quote Circuit Replybullet Posted: 31/Oct/2010 at 10:53pm
Sure.... after that last post 25/Jun/2007 by Kulmanjee, Every stock appeared too expensive for next couple of years Wink

Originally posted by Monkey

 
This is interesting thread, lying idle for years.
 





Edited by Circuit - 31/Oct/2010 at 10:54pm
Fundamentalists and anticipators may have difficulties with risk control because a trade keeps looking ‘better’ the more it goes against them....Ed Seykota
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basant
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Quote basant Replybullet Posted: 31/Oct/2010 at 6:14am
A good solid growing business run by able honest management and generating high returns on capital having leadership in its sector is all you have to identify. If you think that the company that you own belongs to this category then it is sure to bounce back.

Sounds cliched but that is how I look at any company.

Originally posted by Monkey

 
My query to Basantji and others is that - when stock price is coming down, how do you determine the reasons for the same - whether the growth story is not panning out as expected or whether it is normal corrections. (waiting for few quarters for validation will not work as damage would have been done by that time if story is not panning out as expected).
 
 
 
'The Thoughtful Investor: A Journey to Financial Freedom Through Stock Market Investing' - A Book on Equity Investing especially for Indian Investors. Book your copy now: www.thethoughtfulinvestor.in
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