Investment by Sensex PE Ratio. Excellent Returns

[sumitalwar]

I like this thread. Indeed, Warren Buffet himself says that he always buys undervalued (Low P/E) stocks and nothing else.

However, is this thread not too simple to be true? Can P/E be so simple?

in my opinion when the nifty reaches that pe levels below 15 ( or 14 ) one should start buying index funds ( or nifty bees ), in an sip type way .

nifty could test the patience but then patience will be rewarding . and exiting when nifty pe goes above 20 + levels will be fruitful .

rgds


sumit

 

[crazyass]

The difficult part is in finding which markets have a strong future.

Any strategy for that?
The global situation doesn't really inspire confidence.... I can't think of Oil and Metal.... or even Automotive doing well. That's all till Thursday of course...... closely watching FED rates. The Finance Minister of India seems to be hinting at a considerable hike.... but that's just gossip so far.

 

[amitrandive]

in my opinion when the nifty reaches that pe levels below 15 ( or 14 ) one should start buying index funds ( or nifty bees ), in an sip type way .

nifty could test the patience but then patience will be rewarding . and exiting when nifty pe goes above 20 + levels will be fruitful .

rgds


sumit

Looks good, but when to exit/book profits or continue buy and hold ?

See the period from 2012 to date.

Nifty PE going above 20,but Nifty crashing from 9100 to 7800,do we add on or exit ??

Daily Chart of Nifty

 

[sumitalwar]

Looks good, but when to exit/book profits or continue buy and hold ?

See the period from 2012 to date.

Nifty PE going above 20,but Nifty crashing from 9100 to 7800,do we add on or exit ??

Daily Chart of Nifty

i have looked in nifty chart monthly from keystock software and nifty levels were 5900 approx ( highest value in that year . )

i have also looked at the following link

http://www.nseindia.com/products/content/equities/indices/historical_pepb.htm

and compared pe for calender year 2012 and of 2015(ytd ) and pe for the year 2012 were from 16-18.6 and from 2015 (ytd) has been broadly in range of 20.7 -23 . and clearly nifty has given good returns till date .

i clearly believe that investing thru pe way only thru sip is a better way for mutual funds (nifty bees ) .

any can tell me a better way ?

clearly this is investments and so no leverage ( loan or margin whatever one may use ) is not the way to go .

to hold or add on position is one's call . i clearly will do sip ( in an indexed fund ) when nifty pe falls in 16 range and below .

with warms regards

sumit

 

[amitrandive]

i have looked in nifty chart monthly from keystock software and nifty levels were 5900 approx ( highest value in that year . )

i have also looked at the following link

http://www.nseindia.com/products/content/equities/indices/historical_pepb.htm

and compared pe for calender year 2012 and of 2015(ytd ) and pe for the year 2012 were from 16-18.6 and from 2015 (ytd) has been broadly in range of 20.7 -23 . and clearly nifty has given good returns till date .

i clearly believe that investing thru pe way only thru sip is a better way for mutual funds (nifty bees ) .

any can tell me a better way ?

clearly this is investments and so no leverage ( loan or margin whatever one may use ) is not the way to go .

to hold or add on position is one's call . i clearly will do sip ( in an indexed fund ) when nifty pe falls in 16 range and below .

with warms regards

sumit

SumitJi

This is passive fund investing and its got its own limitations.
Also past performance is not indicative of future performance,now that the market dynamics have changed drastically.

With all the FII ,HFT and Algo trading going on, like all the other indicators its value can also remain in the higher 20's for long time ,difficult to give an entry.

All amount of backtesting done on previous years does not help.One should always take into effect that Markets are dynamic and algorithms and FII's have changed the ways in which trading/investing is done.

Any indicator nowadays can be manipulated to show meaningless values,or atleast the benchmark values have changed.

Any amount of previous backtesting will not help,as new algorithms are written everyday to fool traders/investors.

My question is that if it does not come below say 18, do we invest or not?
Or wait for that magical back-tested value of 13-16 to come?

 

[Steve_1982]

Any strategy for that?
The global situation doesn't really inspire confidence.... I can't think of Oil and Metal.... or even Automotive doing well. That's all till Thursday of course...... closely watching FED rates. The Finance Minister of India seems to be hinting at a considerable hike.... but that's just gossip so far.

This is something new to me. I would say look at countries with a strong currency. The ruble was weak and that has a factor in the market prices. India's rupee isn't that strong either but economic forecasts are not very negative so it is ok for now to invest in India.

 

[sumitalwar]

SumitJi



My question is that if it does not come below say 18, do we invest or not?
Or wait for that magical back-tested value of 13-16 to come?

Such a call would have to be taken by the investor only . There is no holy grail to investing also .

Can any one suggest a better alternative .?

 

[crazyass]

AMtek Auto's P/E is less than 2

Anyone have any ideas?

 

[Einstein]

AMtek Auto's P/E is less than 2

Anyone have any ideas?

If you remove all the debit company have, its a good business. but management has ruined it all, its not longer a Cinderella company.

 

[DSM]

Einstein,

Very true. And BTW, glad to see you after a long time! :thumb:

If you remove all the debit company have, its a good business. but management has ruined it all, its not longer a Cinderella company.