Known Fact: Equity markets go through a cycle. The cycle of peak and trough. The cycle of greed and fear. Cycles have happened multiple times in the past and will continue to happen multiple times in the future. Every time underlying reasons for a peak and trough are different but one thing always remains constant – human behavior. Every peak is accompanied by an aggregation of collective greed and every trough is strongly correlated with an aggregation of collective…

Imagine you have been told about an investment opportunity in a business. The numbers look fantastic from all angles. High margins, rapid growth, superb financial ratios like high ROE, low debt/equity & interest coverage ratio, etc. The company is led by charismatic founders telling captivating & convincing business success stories. You are excited about the opportunity and ready to pay a much higher premium compared to other businesses in the same industry. However, one fine day people…