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What is the size of your fish in the pond?

Generally, people find valuation from the price of stock like reliance is cheap at 2400 and MRF is costly at 80000, let's assume that you little smarter than you are thinking about market cap(share Price * no. of shares) while smart people think over this like how much percent of your company to the entire industry. for example, currently, the market cap of titan is around 222k cr.  but only 5% of the whole jewelry industry. therefore, the size of the pond matters for your fish.

      First of all, understand what type of combinations are there. 1) big pond big fish 2)big pond small fish 3)small pond big fish 4)small pond small fish. if you are smart then you can select a big pond and small fish but question yourself first like "is a pond right ?"  "is your fish will get the right food and nutrition at right time?"  is the water clear? and check if your pond is turgid? so I can say that this is a good option with risk.

     As you are smart then you had already ignored the second and third options because the second option is the worse investment ever. After all, not only fish is small but the pond is also narrow and the third option is not acceptable because Warren Buffett said " future profit will get benefited not past". now only the first option is available which is the best investment ever because the pond is growing and the fish also has grown. 

      Finally, you need to think about the proportion of your fish on your pond, not the market cap. 

( Fish and pond are used as a metaphor for company and industry)

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