Coming back to this - while the metrics you employ may be...

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    Coming back to this - while the metrics you employ may be absolute, they all contain a variable which is determined by market forces (prices, discount rates including the risk-free rate of return), which in turn is driven by underlying macroeconomic factors like interest rates.

    So, at any point of time, while you may set limits for yourself, the market may bid your targets up well beyond those levels. I myself have forgone or prematurely sold a number of names (A2M, NEA and NAN being three examples which in themselves have cost me a small fortune) only to see them march relentlessly higher during the latter part of this decade-long bull market. Now obviously a part of that re-rating is due to strong business performance, but multiples have continued to expand too, aided on by favourable macroeconomic conditions, chiefly accomodative central bank policies. In that context, how do you approach the deployment of your capital? Do you just stick to your rules/limits and wait it out? Or do you pay up and accept a lower future return potentially (that is still better than no return at all i.e. too much cash burning a hole in your pocket!).

    Thank you.
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