CAUTION - How does 20% - 30% down from it's top calls for a 'BUY' ?

You must have surely come accross one if the 'reels' or videos or social media post of stocks available at 20% to 30% correction or fall from it's high or peak or top.

Value is derived from either -

- current price as compared to it's current cash flow and current profits

or

-current price as compared to futrue cash flow and profit outlook for the future

or

-combination of both

So for me, if any stock is a 'buy' which passes one or both of these criteria's.

Everything else is immaterial.

Be it 'Zomato', or 'Tata Steel' or 'TCS', 'HUL' , 'ONGC', 'Reliance' or 'L&T' - this is simple criteria.

(ofcourse there are multiple ratios and formulas to arrive at the above criterias and then ones consent on own reports and readings)

30% or 50 % fall from the top may just send an alert under 'have a look' or 'keep a watch' only if it falls under abovesaid criteria.

So do not get enticed by headlines of 20%-40% down from top or peak.

#keepitsimple #investingforbeginners #financialplanning #financialplanner #wealthmanagement