High Quality vs. Low Price..?
*High Quality Vs Low Price* *If you pay peanuts, you get monkeys. ~ Old adage* *If you remember the stock market crash of 2008, you also remember that it spared almost no stock. Companies, even the well-managed ones, lost half or more of their market capitalization in few months.* As an example, *Pidilite* (makers of Fevicol), which was one of those extremely well-managed businesses then, lost 55% between December 2007 (just before the crash started) and March 2009 (the bottom). *Titan and HDFC Bank,* two other stalwarts, lost 50% each. In short, the crash was like a bad dream for people even in these marquee stocks. But for those who held on to their nerves, and to these stocks, the next decade was about to turn into a beautiful dream. As an example, assume you were owning Pidilite near its peak in December 2007 and went into a deep sleep that continued till today (June 2018). Your return from the stock would have been around 1,000% (CAGR of 26%) over this decade! Also ...