In a bear market even 10x PE is expensive and looked with skepticism, however in a bull market they will justify how 50x PE is also cheap

In the past 6 months, our BOLD portfolio (previously known as CORE) has under performed the market and that could have caused worries, but here’s why you should not be worried.

All companies in the portfolio are near debt free and demonstrated high revenue growth in the past, trading at a near 10x multiple. The debt free status ensures continuity through bad market conditions and current trading multiple are validation for deep value.

We ask investors to do an SIP in this as these stocks have a longer time to realization.

The SIP helps to ensure investors are able to scale up on the downside and can make a big win in absolute terms when the markets revive.

Buffett once said, buying a little of a good investment is like buying a bottle of fuel at a discount. what are you going to do after that bottle runs out, but your car still needs gas?

Strategy of LOW PE Investing

Investing in low PE companies is a way of buying into companies that have a lower price relative to their earnings, meaning that you are paying less for the company's earnings potential. This provides a margin of safety, as the company's earnings have room to grow, which can lead to a higher return on investment.

The key to successful investing in low PE companies is patience and a long-term outlook. These companies may not show immediate returns, but as the market realizes their potential, their stock prices will likely increase, providing substantial returns over the long term.

By using an SIP approach, you can take advantage of market fluctuations and gradually increase your investment in low PE companies. This helps to average out your cost and reduces the impact of short-term market volatility on your investment.

In conclusion, investing in low PE companies is a smart and long-term strategy for those looking to build a stable and diversified portfolio. By investing in good quality, stable companies that are trading cheap, you can gradually increase your investment and reap the benefits of higher returns during a bull market. So, don't be swayed by short-term market fluctuations, have faith in your investment strategy, and watch your portfolio grow over time.

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