tag:blogger.com,1999:blog-7795758.post112283058662560936..comments2019-01-14T15:22:29.776+05:30Comments on Fundoo Professor: These are a few of my favourite things (from amazon.com)Sanjay Bakshihttp://www.blogger.com/profile/03107029564489472875noreply@blogger.comBlogger1125tag:blogger.com,1999:blog-7795758.post-1122907342936097962005-08-01T20:12:00.000+05:302005-08-01T20:12:00.000+05:30Hii also follow buffett, graham keenly read your a...Hi<BR/>i also follow buffett, graham keenly <BR/>read your analysis on the stock market and found it very interesting.<BR/>I had the same view points but have the following difference in opinion on the conclusion<BR/>- the business cycle is at peak ( ROE for most the nifty and sensex stocks is around 20 % plus (the avg has been 16-18 % ). <BR/>- Operating margins are at all time high<BR/>- interest rates and debt levels are at all time low and so is depreciation (could be due to high capacity utilisation)<BR/><BR/>My thought was the current earnings are due to a combination of the above factors. If we were to consider the normalised earnings based on the last 10 years ( in terms of ROE, Operating margins, interest rates and depreciation ) , then the PE is closer to 17-18<BR/><BR/>Not alarming valuations, but not with enough margin of safety to commit new capital. <BR/><BR/>just a few additional thoughts ...<BR/><BR/>but great post and i would following your blog <BR/><BR/>ps: i have read your articles in the past on your website and found them very interestingRohit Chauhanhttps://www.blogger.com/profile/00356455735241398199noreply@blogger.com