I've always been a votary of the old adage I assimilated from Udayan from CNBC, "It's not timing in the market, it's time in the market".
Before we learn how to pick multi-baggers, we must know that patience and valuing time is not for the septuagenarians (read young blood) as they say, in the markets at least. We must also appreciate the difference between divine investment and greedy fearful day trading where timing sways decisions.
From Ben Graham to Dodd to Keynes or even Sir Isaac Newton who miserably failed in the market game won't tell you that they made all that moolah from the charts, price, volume and what not. With the involvement of Big Data, AI, Algos in investment management, people have forgotten old school investment management: market only unlocks its gains to investors who use the key of strength of business. I agree that past price patterns can repeat but it doesn't mean they surely will. Human behaviour is more complex than any super or quantum computer yet and you simply cannot predict it . The beauty of holding can not be replicated by timing. And no one, be it the best of the traders or quantum legends can top it.
If the core of the business is the type you are crazy about, no matter what the valuations, the PE and EBITDA are, you will make good money. That will be all for Lesson 1. Stay tuned cause next we discover 'Ways to Analyse Promoter Holding.' CHEERS!
By Ishan Nagpal
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