Pharma sector has reached at remarkable consolidation point to make a entry now

Q-What has changed so far in Pharma sector ? is this first time any pharma company received warning letter from USFDA ?

Ans- No ?

Q-Are company facing any threat to any new formula or technology  for healing or we are still dependent on current way of healing via current medicine ?

Ans- Currently there is no such formula or technology which can completely over shadow the current scenario of medical healing.

Q-What  are you waiting for ? why common investor are avoiding this sector for investing ? in a such all time high market why to avoid such and  opportunity  ?

Ans- fear

Q-Are profitability of this sector hit by  any low margin ?

Ans-  No , only changes here is pricing which is getting more organised which is a good sign for each of this companies to work on better research and looking for more market to expand.


Applying Buffett's rule  -  "Be Greedy When Others Are Fearful"

Select the correct company here which are already established to shine out from such scenario's.

Its important to be organized, healthy, patience for choosing correct investment opportunity ?

Now the question is How ? and Why ?

We have seen people around us organized  and giving advise in their 40's and 50's   bcoz  they learned this through their experience, that being organized helps them to think wisely while making investment decision as well as in life.

but being in 40's and 50's will not help them as they are already started aging , which in today's lifestyle also increase medical expenses. 

so the question is why people are not so organized in their 20's and 30's ?

People in their 20's and 30's spend most of their time either in graduation school or work place, giving them freedom all of a sudden to fly free, hence they never give importance to be organized as a person , healthy living.

also in our education system we don't have such subject or training where we are teaching them its importance, generally such education are given when you are in defense academy or training bcoz its the backbone to make quick and wise decision.

so being organised helps to understand your basic needs , health needs , family needs  which directly help for choosing right investment opportunity.

so just clicking the investment button will not help you , you need to know when and which investment button to click which is directly proportional from this factors. 

New Chapter for Infosys Ltd

one liner :
Vishal Sikka resignation  proves that people who talk more work less in their execution.

This is a learning experience for all of us as a investor that never to get carried away with the flow of talk, and  stick to base.

When Sikka joined Infosys , he made several talks to bring the company on fast track and maintain the margin more than  industry standard , in-though rest of the IT industry made clear guidelines that its not possible to make margin more than 8 to 9 % taking into picture of current situation of industries slow down and geo-political issues.

bottom-line:
 your work should speak , not you.
your spending should be less than your earning.

company's performance during this phase was opposite of above two bottom-line.


   

Vertical growth and Horizontal growth theroy

What is this theory and why its still  not so popular ?

 Let me explain what this theroy is and how to apply it while analysis growth model for companies.

Vertical growth : growing in vertical direction,  since the growth is vertical it gets visible to every person.

Horizontal growth: growing parallel with time , slow pace. Since the pace is slow its growth momentum is not visible to all.

When the tree grows vertically the branches gets thinner at the top ,which means if you are climbing a vertical growing company then you need to realize till what level you can climb. If you are sitting on thinner branch, it may break down giving a high impact in life.

Creeper tree needs support to grow. The support here is time. Whereas the fruits can be easily plucked by us standing on the ground.

Identify the creeper trees growth model in the stock market and wait for the flowers to turn into furits.

Example of vertical growth : Patanjali ( growth  visible to everyone )

Example of horizontal growth : Amul
( growth rarely  visible to anyone )

I follow the horizontal growth path slow pace , walk like totorise , eat a tablet of patience everyday.

DMART IPO VIEWPOINT

DMART IPO making a lot of nosie, people on street  are chasing it , which is also popular due to renowned investor RK Damani as part of promoter group.

Definitely​ a well structured business model,  but looking at price its too expensive to bet money on it. I still think so renowned investor as part of promoter group...  why would he or he's team would comeup with so high p/e ? Rather he should have brought the price with reasonable p/e .. keeping win win situation for company and public creating an example for others to follow.


This will definitely openup at high price on listing but will fall below the ipo price in next 2 years timeframe when the earnings doesn't meetup the expectation of people chasing it.

For me the best price to bet money on it would be in the range of 100-130.

End of season sale will go off soon.........

Grab the opportunity  to buy quality companies  as end of season sale will end soon.

Note: don't be in rush to buy anything which is cheap , not all cheap product long last, hence buy quality companies which are currently running at discount price.


The sector which I think will zoom in up coming 3 yrs will be,

Farming - we are currently running out of  quality food product  which needs  to be addressed .

Infrastructure development which includes transportation  for better connectivity with least time.

Technology  for better living and security.

and  the one which is on the top of all this  "EDUCATION"