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- เผยแพร่เมื่อ 5 ต.ค. 2024
- GOOD business to a GREAT business is a money-making journey. This is when they have comparative advantages, a large runway of growth and generate superior returns for shareholders through a mix of earnings and multiple expansion. Most businesses, once they become GREAT also trade at GREAT Multiples and …then they falter, become too big to grow, valuations surpass reality, competition kicks in or they are disrupted etc. Our job as investors is ALSO to avoid such painful pitfalls of Great businesses becoming Good businesses.
That's why getting rich and staying rich are both important. Making money and preserving that money that was made and growing it....
Buying high-quality stocks at very high entry valuations can indeed lead to subpar returns over the long term. While it may be tempting to invest in companies that are currently in high demand and commanding lofty valuations, it's essential to consider the fundamental principles of investing. The price you pay for a stock matters because it determines your potential return on investment.
When you buy stocks at high valuations, you are essentially paying a premium for future growth expectations. The market has already priced in the anticipated success of the company, leaving little room for additional gains. As a result, even if the company continues to perform well, the stock price may not increase at a pace that justifies the initial investment.
Over time, the market tends to correct itself, and companies that were once overvalued may experience a decline in their stock prices. This correction can be triggered by various factors such as changes in industry dynamics, economic conditions, or investor sentiment. When the correction occurs, the inflated valuations can quickly revert to more reasonable levels, leading to losses for those who bought at high entry valuations.
Moreover, high valuations can create unrealistic expectations. Investors often expect a company's growth trajectory to continue indefinitely, ignoring the cyclical nature of business and market cycles. Companies face challenges and setbacks, and buying at high valuations amplifies the risk of disappointment if the company fails to meet or exceed those inflated expectations.
To achieve favorable long-term returns, investors should focus on buying stocks with a reasonable valuation relative to their growth prospects and intrinsic value. It's crucial to consider the company's financial health, competitive positioning, industry trends, and future growth potential. By investing in high-quality stocks at reasonable prices, investors can increase the probability of generating superior returns over the long term while minimizing the risk of significant losses during market corrections.
Hi friends, I am Ajay Sharma. I have been an active investor and a serial entrepreneur living in Singapore. I am an alum of IIT (BHU) Varanasi and IIM Ahmedabad. I have worked in some of the leading global corporates and am passionate about startups.
To know more about me, watch - • Who am I? #AjayFY
To connect with me, follow me on my socials -
Instagram - / ajayfy.sharma
LinkedIn - / ajayfy-sharma
Twitter - / ajayfysharma
#ajayfy #investing #getrich
After my MBA and CFA I started to disbelieve fundamentals looking at the recent movement in overvalued stocks getting only more overvalued. Your video has helped in establish that clarity in fundamentals again. Thanks!
Quality content 👌 but most underrated channel in TH-cam community. Hope soon you will get millions subscribers
Wow!! Ajaybhai, your G2G series is absolutely mind blowing for all serious investors ... it just keeps getting better with every chapter ... Thank you very much for sharing your "Pudiyas" that you have accumulated over multiple decades of market studies ... I am a portfolio manager running a family/friends fund primarily in the US since 2010 🙏 A special thanks to Vivekbhai for introducing you to us and more so for inspiring you to open up your mind map for serious investors to successfully navigate the rough waters market 🙏
Yes, Vivek bhai ko dhanyawaad
Ajay Ji, you do wonders always. Keep going. God Bless you.
Amazing clarity
This is music to the ears.
Great learning. Thank you for sharing your wisdom. This will help all for making investment framework 🙏
Wow, So detailed. You must be very expert & I see that you are not doing this for money.
Thanks for sharing this insight.
Your video has a lot of knowledge, we get to learn a lot from it, thank you.❤
Excellent sir . Good for risk management & risk reward returns !!👌👌👍👏
I am learning a lot from you. I am gaining more knowledge about the stock market. I always wait for your videos!❤
Fantastic analysis indeed. Thank you so much. ❤❤
जनाब जी आपने कमाल की जानकारी और इल्म दिया है। जितना भी शुक्रिया अदा किया जाए कम है।
मगर एक शिकवा है आप के video का बहुत इन्तज़ार कर ना पड़ ता है। हमें बड़ी शिद्दत से आप कि video का इन्तजार रहता है, शुक्रिया
Thanks a lot Ajay Sir for sharing your valuable insights. I am a professional Gemmologist & a Jeweler, i have been studying the stock markets & Mr Buffett for last 5years. But unable to make a decent return because of wrong choice of stocks. Your learning videos have actually sparked a fire inside me to start my investing journey in the markets afresh, apart from Gold & Gemstones(which i have been doing for last 18 years). Thanks a lot for this selfless MENTORING.
unbelievable I have watched many videos, but this is extraordinary. Dil se sukriya. God bless you sir
Very simple yet most useful discussion for P/E.Please guide for sectors which will grow most in next 10 years.
Please fix sound for your videos, it’s too low and i use quality earphones! Btw, superb knowledge, i have been binge watching your videos and sharing the same to my WhatsApp group
Very informative
Ham to bhai aap ke fan ho gaye hai, superb explanation dete ho
I was expecting the same for nifty50 stocks..take a period of 20 yrs and how many beat nifty..that would be interesting
This is the great analysis I have ever seen. Thank you sir.
You are good and great both
SIR,you are great.
Greate analysis Ajay sir
You have beautifully and correctly define your experience in this vedio. My father says mandi ki purshase ko 2 year sambal lega to paisa double ho jayega. Teji ke saude ko nahi katega to 2 yrs. Ke baad bi interest/ byaaj nahi nikal payega for who is doing leverage. 😊
Very well explained. Thank you for cautioning us not to become emot while buying.
Thanks
Nice video. it helps lot❤
Dear Ajay Bhaiya ..Great Concept explained in simplest way .Thanks a Ton .God Bless you .Keep guiding and mentoring .
Great knowledge aap saral bhasha me dete ho , salute to you
Thanks a lot Ajay Bhaiya. Listening to you feels like listening to an elder brother.
Geat video Ajay bhai you are the treasure of wisdom. Million. Dollars education free really appreciate 👏👏👏
Thanks Sir
Unbelievable knowledge sharing.................WOW
awsome conecpts !! mind blowing
Great knowledge video ever seen on investment.
My view on companies for long term choice changed...thank u sir...❤❤😊😊
👌
Your way of explaining is excellent 👌
Thank you for the another gem for lifetime.. Great principles to be followed throughout investing life..
thanks
wow thanks❤️🙏❤️👌👌
Too good Ajay bhaiya. Thank you for presenting in a simplistic manner. Can you pls also prepare a video on what multiples are cheap / expensive for every sector? Bcs its not a one size fits all I believe, thanks
BUT 1 VERY IMPORTANT OBSERVATION I HAD:
Always see that "Industry leader" will always enjoy a better/rich valuation than 2nd, 3rd and so on players...
For Instance, Take IT Sector TCS enjoys rich valuations than Infy.
Take Paints Industry - Here Asian Paints enjoys rich valuations than Berger...
And In Renewables - Adani will enjoy rich valuations...
What I understand from these observations is that somewhere or other Industry leader enjoys better premium multiple than benchmark Industry PE.
So do we say that Asian is expensive and now let's take berger or so...?
What's your take on this Ajay Sir ?
remember Growth is trap lesson for parag parikh book
sir fundamental investing ka ek structured course launch kerdo aap
😄
Thankyou sir for helping us your long phenomenal experience in the market.
Sir I 100% agree with you and I am already on this path thanks for nice video
Very useful sir❤
Nicely put as always, Sir
Thank you so much🙏
Ohhh Sir Awesome ! After 2 years I have got the clean explanation at what price should a new small investor should entry into market. also I am from Kolkata Sir. I respect your true initiative to taught new investors. Sir one Query - How to identify a good business and Great business. I have seen the video good to great [G2G] but as per technical point of view like Quantitively and Qualitatively how we can segregate good business and great business. Is it difficult to identify one business Qualitatively ? how we can do it? if you can prepare any 2by2 for it that will be great for new learners.
nice. thank you!
Unique video. U have the talent to convince anyone
Thanks a lot Ajay bhaiya😍
👏
Sir, Great knowledge as ever.
Great lesson, certainly helps.
Dyam you are awesome ❤
It's a grt learning.session.
Absolutely, Sir!
Sir its great video and really make me more concious of importance of price at the entry time. These multiple which you are mentioning are PE multiples correct?
Great learning
Hi Ajay Ji,
Great work for retail investors, it will really help us to find a good stocks.
My suggestion is you should write a book on stock picking process.
Thanks and regards.
Prashant
granuls india
look pE low
fudamental is good
buisness also good i think
pharma sector
what your view..?
Amazing again ajay sir always Good Great God
Great learning 👍 thanks.
Amazing analysis... Hats off to you sir 🙂
Great sir❤❤❤👍🙏
Bahot sikhne mila
Ajay you are my fav finance youtuber
सर एक मार्गदर्शक व्हिडिओ उस विषय पर बनाईये की," करोना पॅंडेमिक के बाद, भारतीय केमिकल उद्योग मे कुछ कंपनियो ने उनके शेअर्स कैसे जानबुझकर बढाये,और ईस समय क्या उनके मुल्य हे अभीभी बबल है".
Nice content sir...
Well said sir
amazing.!
Sir apka analysis bahut accha hai par jo past ka result hai wahi hamesha hoga ye nahi kaha ja sakta. 70s ki technology aur ab ki technology mein zamin ashman ka antar hai . pahle info pe kuch rich logo ke hi pass tha par ab ye easly and widely available hai. Sabko apna sach khud search karna hota hai. kya chalega ye har admi pe depend karta hai. jo jitni mehnat karega utna hi payega. mehna info lene mein bhi aur stock pe continue nazar rakhne mein karni hogi with stop loss and proper dicipline .. Thanks ...
sir u r great
Agar company me 30-40 percent ki growth ho to PE multiple avoid karna sahi hota hai keuki company me Growth hai to PE automatic adjust ho jata hai , es lea pahle growth dekhye then PE multiple
Great analysis sir... Eye opener for all .. 🙏🙏🙏
Sir then please explain the logic behind funds like Marcellus that invest in high PE stocks. Genuinely would like clarity.
haha .. marcellus says to buy at any PE as long as its a good company
As always everything was amazing but can u say the numbers in English sir.
Thank you
Low PE yesa nahi hai ki wo gyada return degi as compare to high PE stock, Titan ko hi dekh lijiye aur Coal india ko dekhye
Sir, please post a video on "how to spot a multibagger early".. Thx in advance..
Sir can you share the principle of number chart and G2G framework slides. I want to take printout of that. Please….
बहुत बढीया सर आप अच्छा बताते हो
हेलो सर, इंडिया के ev bus makers का मार्केट डायनेमिक्स बताइये, byd और अन्य चाइनीज के साथ क्या प्रॉब्लम हैं ?
Thank you for sharing this informative video! I learned so much from it.I highly recommend this video to anyone interested in investing . sir what is more important when entering a stock with a holding period of roughly 2 years the intrinsic value or p/e multiple ?
Thank you sir
sir kya gajab pura trend following psycology match kar raha ha i awsome awsome love u as my mentor
Great video Sir, but what if the the company uses Cash Accrued to Acquire new business which would boost the Topline??
What qualities one needs to enter into the job market (PMS/Hedge fund MF etc). Pls guide I am 22 years old.
Thanks 🙏
@@sumanmondal_98 naaahhhh
Sir please make video on India's insurance reinsurance business growth possibility and future for holding shares
Sir important question please.. what about turnaround SMALL companies which has mostly high PE ? KINDLY EXPLAIN ! THIS is confusing 😮
I have used PE just as one valuation parameter to explain the concept. For turnarounds, short term PE will look very high. To keep it simple, you can look at P/Sales or PE 3 years out
Sir but todays time of liquidity it is very tough to find low pe stocks and I think larg caps are trading at good valuations
Hello sir agar industry pe 87 hai or usi sector ka koi stock agar 119 PE pe trade kr rha to ap use expensive kahenge kya?
If a company market cap is small like 5 to 10 thousand cr, future growth potential look very good and pe 100 then what possibility. Please answer 🙏
❤️❤️👍👍👍👍
Thanks sir ji 😊❤
BUT sir is this valid for small or micro caps or businesses those just turned around...? I think small businesses doesn't hold good for this concept. Sir kindly correct me if I am wrong
Mehra ji, this applies to any business irrespective of size, micro, small. large , mega.
If you buy 10 paisa for 15 paisa, or 1 Rupee for 1.20 or 100 Rs for 120 Rs or 100 cr for 120 cr, you will lose money.
Paying up more than what something is worth is a bad recipe
Separately, this is the NASA link for you
worldview.earthdata.nasa.gov/?v=57.51858046658015,-22.365539900020266,103.80064582882315,64.31028734326433&l=Reference_Labels_15m(hidden),Reference_Features_15m(hidden),Coastlines_15m(hidden),VIIRS_SNPP_DayNightBand_ENCC(hidden),VIIRS_Black_Marble,VIIRS_SNPP_CorrectedReflectance_TrueColor(hidden),MODIS_Aqua_CorrectedReflectance_TrueColor(hidden),MODIS_Terra_CorrectedReflectance_TrueColor&lg=false&t=2016-01-01-T00%3A00%3A00Z
Pata hai aap Saurabh Mukharji k baare me bol rahe hain😅
Yes coffee can investing is all about long term investing
@@lakshaybhardwaj7267 no issue with long term, but buying at any price theory is just for favour of pms houses because they can't take less than 50L investments. Retailers have to understand that they are launching every year new products and luring for investments.
How can one believe his theory that 20 crore corpus he is seeking for his family by investing in Marcellus CCP, while he is earing himself more than 100 crore from Marcellus. Those are just stories to sell. Beware, it is your money. Moreover, after buying a share, if it's being disclosed immediately in the public,front running can also be a possibility. Retails has to be aware of all this what ajay sir indicating.
Mere muh ki baat chhin li
🤣🤣😅my story teller
Saurabh Mukherjee is gem.