Metal stocks are facing the worst drawdown ever and continued to be in drawdown since the start of 2018. The current drawdown stares at 60%. Never mind the damage is done and currently trading down below the fair value.
Before making investments, one has to evaluate it. For valuating stocks, comes the investment valuation ratio which is the P/E ratio. As a value investor fundamental metrics will be the first priority to value a stock. For calculating P/E certain circumstances may be informative & in some cases it is quite difficult.
Despite theories that the markets are efficient I believe that most people make investment decisions that include these psychological biases, generally without realizing they’re doing so. Often, these biases influence a substantial proportion of market participants in the same direction, contributing to the short-term irrationality of stock prices that value investors see as an opportunity.
Warren Buffett is the most glorified and respected investor of all time. And rightfully so. After all, he became the world’s wealthiest man by essentially picking stocks?-Dead wrong.Not only that Warren Buffett is also remarkably misunderstood by the general public. I personally believe the myth of Warren Buffett is one of the greatest tricks ever played on the small investor and the approach of the value investing in general.
When it comes to 21st century financial markets,The complexity takes a heavy toll when you scroll down the list of market participants all you notice is the emerging linear changes that keeps the market evolving from phase to phase. After dot.com bubble,technology played a big role in transforming marketplaces,auction facilities and order flow transmittation from open out cry towards computer screening.
Which is a better value – a stock selling at 500 Rs/- per share or a stock selling at 1300 Rs/- per share? (Same sector) If your answer hasn’t already sprung to mind, be aware. The correct response is not the 500 stock. Nor is it the 1300 stock.