
Something of Value
The Memo by Howard Marks
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Investing in the Nifty 50 Stocks
low valuation per meters is far from synonymous with under priced. A stock with a low petae ratio, for example, is likely to be a bargain only if its current earnings and recent earnings growth are indicative of the future. Just pursuing low valuation metrics can lead due to so called value traps. Things that look cheap on the numbers aren't becaus they have operating weaknesses or because the sales and earnings creating those valuations can't be replicated in the future.
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