🌟📈People are messaging me regarding SME companies so my view is very clear please 🙏 note down the points(Personal View):
1)Valuation wise many companies are trading above 30-40 P/E do not chase them blindly let it come down as there is a huge bull run already ongoing and price discounting their business models or guidance in concalls
2)There are many companies without moat going up just for SME Tag without having good earnings or management information just for liquidity
3)SME bull run started way back so we are in a mid journey so it is better to stick to few quality companies and not join the rat race just because the company is SME because I can see oversubscription in IPO of retailers is at ALL TIME HIGH that is not a good sign
4)I have taken only 6% exposure to SME and may go towards 10-12% not more than that at current stage
5)There are good companies too in SME but what important is earnings need to follow up and price should act more on earnings rather than only liquidity or smart money play
6)You can never earn when the room is crowded
1)Valuation wise many companies are trading above 30-40 P/E do not chase them blindly let it come down as there is a huge bull run already ongoing and price discounting their business models or guidance in concalls
2)There are many companies without moat going up just for SME Tag without having good earnings or management information just for liquidity
3)SME bull run started way back so we are in a mid journey so it is better to stick to few quality companies and not join the rat race just because the company is SME because I can see oversubscription in IPO of retailers is at ALL TIME HIGH that is not a good sign
4)I have taken only 6% exposure to SME and may go towards 10-12% not more than that at current stage
5)There are good companies too in SME but what important is earnings need to follow up and price should act more on earnings rather than only liquidity or smart money play
6)You can never earn when the room is crowded