Investing Without A Valuation Calculation

đź“Š Investing
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Hello you very wonderful and intelligent people that make up this forum. I truly hope you are doing well and that you are having great success with your investing.

I have found many instances where over valued, growth stocks and even value stocks that are over valued, keep rising well above these valuations. It makes me wonder, is it necessary to calculate if a company is undervalued, using valuations such as Discounted Cash Flow Analysis (growth stocks) and Enterprise Value (value stocks) please?

For instance could you just look at a company’s future expected revenue forecasts and review the company background through Annual Reports and make a decisions based off this please? As so many companies continue to grow despite being overvalued. If anyone kindly had any thoughts on this i would be forever grateful and thankful it would mean the world to me.

Sending you lots of good wishes and i truly hope you continue to have a wonderful life and achieve massive success with your investing. With my every best wishes to you.

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Stock valuation is overrated.

“A blindfolded monkey throwing darts at a newspaper’s financial pages could select a portfolio that would do just as well as one carefully selected by experts.” ( Burton Malkiel, 1973) :stuck_out_tongue:

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I don’t have a monkey or any darts. Can you suggest an alternative?

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I first bumped into the monkey story in Warren Buffett’s 2020 Berkshire Hathaway letter to stakeholders, you could start from there as you ask:

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You could also invest in a broad market capitalised global ETF (passive investment).

Not a recommendation, it’s just an option.

Note: Outside of ETFs I also invest a significant proportion of my portfolio in selected stocks.

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This seems like a reasonable suggestion. Certainly cleaner than getting a monkey.