Hi Sudhakar
Your point is valid and it opens up very important debate – Obstinacy Vs Flexibility. ( I request reader to read Abhishek Singh’s tweets on this topic. Abhishek is a fund manager with DSP and very rarely fund managers tweets their thought processes. Most of the times finfluencers are very vocal on their thought processes on twitter and fund manger’s voice does not get attention it deserves in my opinion)
Coming back to point on Being flexible Vs being stubborn – We all agree that its very rare to find – best business, best management, best growth and best valuation. Therefore we all are ready to ‘compromise’ on ‘some’ (and not all ) of these aspects. As we gain experience in stock market, hopefully we will be in a better position to evaluate these compromises. That’s the “flexibility” part. Having said that, there are few things about which I am inflexible like – 1) track record of at least one market cycle 2) initial valuations and 3) cash generation evidence. These are mainly governed from my investment approach and because everyone has different investment approaches, even every investor will have their own set of non negotiables
IN case of abbott india – as long as standalone entity keeps generating cash and outpace IPM growth, I am ok to be “flexible” on MNC specific corporate governance aspects. You can see in my allocation – Ajanta pharma is getting more allocation compared to Abbott, as I believe Ajanta is more deserving on the business, management and growth parameters.
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