Insanely Practical

It is evident that the highly valued stocks always corrects itself. It doesn't matter whether it is in a booming industry or a company with solid fundamentals, once it reaches high valuation, it will someday somehow corrects itself. By somehow I meant that the usual occurance in stock market. The news, people's psychology, candlestick formation, poor financial results, corporate mismanagement, lawsuits and price action. It is not necessary that any of this should contribute to the fall. But one thing for sure is that, once overvalued, it always corrects.

It is advised that before investing it is a healthy habit to analyse the asset fundamentally. We see people investing purely based on news and short term information. News and media will not cover a story about a fundamentally strong multi bagger stocks. It takes time for them to analyse and media’s rarely do this. But whenever they find something, let’s say stocks, flying it is immediately covered and they compete to out the coverage first. This is observed globally. Besides doing fundamental analysis requires lot of time and patience. There are thousands of companies out there and to find the good one with great potential is hard and risky. Risky means we have to trust our instinct that somewhere somehow we will find those stocks by sacrificing our time. It is a risk when it comes to time.