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