While you already got replies, thanks @Mudit.Kushalvardhan @sujay85 @Cshar @Anurag_Agnihotri for pitching in…mentioning my thoughts in brief below -
As evident from other’s responses, what I would say for defining cyclical/noncyclical - “To each his own”
For, imagine that knowing a sector/company is cyclical when we as minority “long term” investors refrain from such cases (Short term/momentum investors on contrary may love such companies) - Why would Promoters or Big business houses put lump sum of their fortune or rest significant part of their group’s networth in such sectors?..The answer maybe same as above - To each his own
Time frame for these Promoters/Business houses is even longer spanning across generations, so while there are numerous short/medium/even long term cycles which destroys the faint hearted long term investors (including me in some cases), there is an ultra long term cycle in progress - which may cruise across all other cycles in an upward direction…for eg. Automobile sectors (most companies) in India - M&M for eg. However at same time, ultra long term charts of Ford in US may present some other picture for the ultra long term cycle direction…(Food for thought - difference might be company specific, time frame differences or economy specific as well OR maybe that’s what the real direction may turn out to be in case of emerging disrupters like Tech/EV/Tesla etc…I do not know)
Also, I feel if I want to target sectors/companies with least cyclicity, I would target those either impacted by “least variables” or having “most levers” in place to ride the cycles, if any… (This is still work in progress for me in some of the sectors I have in portfolio).
Disc: Above views only academic. I can be wrong in all my assessments. Not eligible for any recommendations/advice.
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