This is personal only for my bifurcation - I consider appliances related stocks such as Voltas, Whirlpool, Hitachi AC as Durables because mostly they sell products which are now becoming necessary but people buy them in longer gaps…
While I consider companies whose products are not that necessary but rather aspirational/lifestyle related or maybe premium as well as discretionary like United Spirits, United Breweries, Titan.
I have faced this several times throughout and currently also facing in Consumer durables and relatively in some FMCG & Insurance as well. I think any long term investor who has diversified into few sectors would inevitably always face this. If I believe in the sector, I would use it in my stride to add on to top names there while if I no longer believe, then would take opportunity to adjust/consolidate as consolidation may help me exit easily once time is right.
Also, its rather a good thing to have at least one sector not performing well if someone is building their portfolio so that they can deploy funds at better prices…
Even one of the worst performing sector of last decade…Telecom which had all wrong things going for it with price wars, intense competition, huge debts, auctions, capital intensive, Jio disruption and what not …gave immense opportunities to accumulate Airtel at every fall near 200 rs to get a decent CAGR as on today. Had Jio been listed, it would have been a multibagger (RIL is, though not by huge times because of conglomerate nature).
I am not at all good at small caps analysis. Its very very difficult to know about them from information in public domain and I do not have the accounting as well as technical skills to catch red flags on time, so not eligible to even comment.
Although, I do like your another small cap - Swiss Military consumer in which you invested only because I know of and have used their products. Still can never understand its recent price movements…
Disc: Academic views only. Not eligible for any recommendations
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