While I agree that owning Quality Business will never go out of style but can it be that the overall nature of the stock market has changed (post Covid) because of various reasons (including awareness, knowledge and usage of AI in making decisions) ..then is it a possibility that overall behaviour of the market has changed irreversibly and we have to operate/accept the current high and abnormal valuation and that this is the 'new Quality' and it will be futile to look any further
One of the most dangerous quotes is, "This time it is different."
Valuation in general has increased over the years for equities in India. But for quality companies, it became unsustainable after a point. And hence, they have seen a good bit of time and price correction.
Sector rotation keeps happening all the time. The sectors of previous bull market doesn't generally work in the immediate next bull market. We will continue to see that play out.
While I agree that owning Quality Business will never go out of style but can it be that the overall nature of the stock market has changed (post Covid) because of various reasons (including awareness, knowledge and usage of AI in making decisions) ..then is it a possibility that overall behaviour of the market has changed irreversibly and we have to operate/accept the current high and abnormal valuation and that this is the 'new Quality' and it will be futile to look any further
Hi Srini!
Thanks for your feedback.
One of the most dangerous quotes is, "This time it is different."
Valuation in general has increased over the years for equities in India. But for quality companies, it became unsustainable after a point. And hence, they have seen a good bit of time and price correction.
Sector rotation keeps happening all the time. The sectors of previous bull market doesn't generally work in the immediate next bull market. We will continue to see that play out.