Chemical Sector
I tried to read multiple reports, few conference calls and also gone through few spaces but unfortunately I dont think I will ever understand any “chemistry” even if I read and reread the available material on the topic
Having said that when sector going through down cycle, there are lot more nuances I am learning – lot more easily as compared to times when going was good.
I am willing to replicate the same approach I followed in pharma where even without granular knowledge on the core subject by just focusing on broader strategy, qualitative aspects and sticking to the simplest segment – i could build descent allocation.
Vinati Organics –
Even without knowing “chemistry”, I believe Vinati Organics is tested enough by market to prove its a ‘niche’ or a ‘speciality’ chemical play. The historic data maturity to give quality signal is high and I believe data maturity will further increase over next year or two as industry navigates through a slowdown. This I believe can improve decision quality for an investor who does not have expertise in the subject. Once I settled on my limitation then the biggest stumbling block in the process of wealth creation remains – handling FOMO.
There are higher odds that other names like – Gujrat Fluoro will do well in future but the question I will keep reminding myself – Do I deserve those returns if even after reading multiple times – I don’t have grip over subject? This questioning helped me a lot to manage Laurus Lab FOMO
Coming back to Vinati, earlier i rejected Vinati’s management because I thought vinati saraf has tendency to over promise. But I am willing to put more work on management to gain comfort and more conviction so that i can able to hold investment across cycles in future
Thank you
| Subscribe To Our Free Newsletter |
