Valuation of shares is very important at the time of investment in the company – Ajay Kedia
Shortly before, in the web series Scam 1992, a dialogue of Prateek Gandhi, who became Harshad Mehta, became very famous to the people. This dialogue of Prateek Gandhi was that – Risk is there to be love. After listening to this dialogue, many people had invested in the stock market by taking risk, although due to lack of complete information about Sherbazaar, many investors are now trapped. Many investors had placed their bets on stocks like Tesla giving maximum returns. But now they have to give to take.
In this regard, Vijay Kedia, popularly known as the famous investor and stock guru, has said that, I love risk, but I do not buy a lion like Tesla. Because I don’t love them. In an interview to an English newspaper, Kedia said that the valuation of the stock increases the risk associated with it. They have no such entertainment. He says Tesla’s stock has already run out of stock, so investors should no longer take unneeded risks. If you are driving a Lamborghini at full speed, you should not remove the seatbelt at all.
Tesla is very popular among Indian investors buying US stocks. In the year 2020, Tesla’s stock had made a long jump of 695 percent. Kedia says that it is very important to keep a margin of safety while buying shares. Don’t buy shares just by listening. The Indian stock is currently stronger than Tesla. They say that while calculating the valuation, you can discount the income of the company for 5 years, but here people are buying shares by discounting the income of 25 years. Which is quite strange.
Kedia says that not only Tesla but any such stock which is not showing growth, it should not be bought. His theory is that without any enthusiasm, only after doing economic valuation, one should buy shares with the potential to give the best returns.