@Iamsamirarora Even if one had invested when Infosys valuations' were at its peak, one would have still made index-par returns in hindsight

earning growth -skill
re rating - luck

those who don’t believe this, haven’t been in the market long enough to understand this.

zomato’s mcap = 70k cr
if you are a value investor, as per buffett’s logic of good price -> zomato must earn 7,000 cr to 8,500 cr pre-tax profit by fy 27
(actually more as India’s cost of equity is higher)
zomato peak sales 2600 cr

lot of dumb ppl have commented shit despite a mention “if you are a value investor..”

think different

src: intelligent investor

1/ @mjmauboussin's book Expectations Investing is a masterclass in valuation & strategy

His framework uses price-implied expectations to assess companies, an elegant way to invert valuation

https://t.co/kESplMN3nW

To practice these concepts, I wrote a case study on Chipotle⤵️

2/ Chipotle is the leading fast casual restaurant chain across the US, with almost 3,000 owned & operated locations

They benefit from strong unit economics and a trusted brand

We'll discuss consensus estimates, competitive landscape, and expected

3/ We must first identify the price-implied expectations based on key value drivers

After finding the consensus estimates, investors can seek opportunities in the expectations - looking for a divergence from the market's assumptions

Let's start with Chipotle's sales growth

4/ Chipotle has grown revenues from $3.9B to $7.55B over the past 5 years, at a 5 year CAGR of 14.1%

Analysts estimate a 13.7% consensus growth rate based on 5-7% same store sales growth, 8% additional store openings per year, and steady digital sales contribution

5/ Next is operating profit margin, which measures profitability from core operations

Chipotle has slowly been growing its margin, now at 10.67%

Analysts expect high margins of 15.75%, with incremental profits from digital orders and unit-level margin growth contributing

"You don't drive a truck that weighs 9,900 pounds across a bridge that says "Limit 10,000 pounds" because you can't be that sure."- Warren Buffett

Rivian ($0 revenue, -$1.6 billion net income) now has a higher market cap than Starbucks ($29 billion revenue, $4.2 billion net income) and Target ($100 billion revenue, $6.3 billion net income).

$RIVN $SBUX $TGT

Data via @ycharts

@Dharmicsaint You can find

@sahil_vi @suru27 Just because a company is fundamentally very very strong , doesn’t mean an investor would end up getting rewarded always . The term called “Valuation”needs to be respected which ultimately gives you margins of safety and comfort in panic situations .