Master class on Valuations

Coming soon...

This is probably best served as a written heuristic or checklist with audio narration by yours truly.

Disclaimer:

Uncertainty and risk are inherent in investment decisions. Trading in financial instruments, including common stocks, without first being well-versed in them and understanding the risks involved is risky business.

Before making any investment, you should assess your circumstances according to your risk tolerance, investment aim, financial condition, degree of expertise, and advice from an independent financial advisor.

Bull markets cause maximum misery when the tide reverses. Tide will someday reverse. Not losing is winning. Go with index funds—the best combo of low cost and market-beating returns!

Key Vectors

•Industry structure

•Management

•Business economics and optionality

•Anticipated rate of change

•Sentiments and psychology

•Absolute valuation metrics

•Time horizon

** 100% 3 year CAGR implies a very healthy 26% annual compounding, which is excellent in a mature bull market with risks outpacing rewards

Disclaimer: No view on stock price or buy/sell recommendation. Purely as examples that match the framework I will be explaining later in 2025. If I get more than 100% in the next 3 years (and I am reasonably optimistic that some of the above will generate much more than 100%, though not all of them will), the uncertainty and randomness are stopping me from naming them.

The purpose is not to offer any ready-to-eat fish but to share fishing skills in 2025 and beyond!