Often to make quick money without doing research, investors look for what’s hot in market.
Some even ask me why don’t I recommend the stocks from renewable energy, EV related themes which are talk of the town.
First of all, I’m not obligated to anyone.
Secondly, majority of these stocks right now trade at screaming overvaluations without a concrete history of business operations.
There are some companies whose stock prices are up by 5-10x in last 3 years just because they have ‘solar’, ‘renewable’, ‘energy’ in their names. Despite poor Fundamentals. The question is, are these overvaluations sustainable? I don’t think so.
Any given day, I’ll be happy to buy so called traditional & boring stocks and make money in it rather than buying fancy companies in frenzy & lose money.
In stock market there are no prizes for picking fancy & What’s Hot companies. At end of the day whether you make money is all that matters. On sustainable basis.
P. S: Despite not buying a single fancy stock, we are outperforming Nifty by a wide margin. Thanks to traditional quality businesses with decent valuations & margin of safety.
