Though the market has appreciated a bit I am sure a lot of us agree this is as good a time as any to build a long term portfolio. (Definitely better than 2007)
Value traps I am told is a long term investor's worse nightmare.
Please post your articles/thoughts/past experience to guide other Teddities
If there is a similar thread I'd request Basant Ji to delete this one.
One very famous value trap is "Holding Company" model. There are many instances where share price of holding company is at good discount to the sum of market cap of underlying companies and some cash or other assets thrown in addition. It is very tempting to buy. However, this value never gets encashed and stock remains at discount forever.
Other very similar value trap is investment companies which are quoted at good discount to market value of underlying portfolio. Here also this discount remains forever.
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