I dont think any amount of time spent from my side will increase my circle of competence in following ideas. I will have to rely on – past track record and past management actions to invest in these companies which gives me some idea of risk played out. Its very difficult to predict any future growth where I dont “critically”understand core subject.
Chemistry
For me – it is very difficult to understand any chemistry and make future predictions using it. No amount of hard work can change this position which arises out of core incompetency. Only company falls in my investment universe is Vinati Organics purely based on past track record
CDMO
From late 2020, suddenly my timeline was flooded with these 4 letters. Life was peaceful before that. I am inclined towards – easy to understand branded plays : branded generics and hospitals. So far results are ok
ER&D and small mid cap IT companies
Can not crack uniqueness in business model for different IT companies. The only way i can play IT sector is through dividend yield of large cap names. 5-6% dividend yield is my entry point
Any sun rise sector – electronic manufacturing, defence, renewables etc
Will invest in future when track record is established
Companies showing only p and l growth without commensurate cash flow growth for whatever reasons
Trying to build FOMO buffers. I am inclined to give up short term gains for the uture benefit. The problem for me is including these companies may make funnel wide open which will increase chances of getting Calital Loss candidate included along with future multi bagger candidate. Better to look at these companies in bear market
Diversified groups
Can not align with them. No regrets on missing out
Any Lenders including tier 1 banks
Cant go beyond Basket of tier 1 financials.
Change in business models or management
Will invest in future when track record is established
Special situations
Will invest in future when track record is established
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