We mostly follow the Value Investing approach.
It has made bumper returns for us while keeping risks low.
Value investing is ‘hard’, especially in bull market when everything is up & nobody cares about valuations. Though it is one with high margin of safety.
I think, if one needs to sustain in stock market over a long period of time then buying stocks when they’re trading at cheaper valuations is the only way.
While people tend to switch their ‘investing style’ from value investing to growth investing, especially during bull markets, we’ll continue to follow our style of value investing.
We may not find many attractive opportunities in bull markets and we’re totally fine with that.
While the tide turns & everyone’s in losses or out of cash, we’d be capturing opportunities at cheaper valuations.
Rather than buying ‘high growth’ stocks at unreasonable valuations and suffer losses later on, we are okay with holding the ones we bought cheap.
Remember, you need not participate in every party in the town. Be happy with the party you’re present in. And we’re very very happy with holding the stocks we bought at cheap & reasonable valuations.
We love to buy stocks when they are cheap. That’s how we make money in stock market!
