@jamit05: You’ve mentioned moving your funds around a pf of 30 stocks. I plan to hold no more than 10-12 stocks (currently own 10) that constitute 38% of my overall pf (remaining 62% is spread around debt and equity MF holdings). Considering the same, I need to be extremely sure of the stocks that I buy and the sectors that I invest in. Gillette and PGHH are my FMCG picks and I intend to hold them irrespective of how they behave…go up in bursts, sideways or down (both these scenarios present excellent opportunities to buy more).
@gautham1: Gillette earlier also had Duracell batteries as part of their business. That may have impacted their overall metrics. Also in 2013/14 they consciously decided to introduce a low cost razor and cartridge system to capture market share. They did so buy launching ‘Gillette Guard’ - this was done after doing a lot of research about the shaving habits of Indians etc. They pushed this product real hard and thereby saw their margins and profits compress. However, they’ve turned around since those days. Let’s now see what the next decade holds for the company. As I said, I think they are a solid brand and will exist for years to come so I’m happy to ride along.
And yes you are right about companies showing phenomenal growth, building great brands - only for them to turn out to be fraudulent. So one needs to try their best to pick companies that they believe will last the distance.
@nav_1996: Thanks for sharing the article, its a nice read. And I agree with you on most of your thoughts.
@kb_snn: Though I haven’t read the articles you’ve shared, I’m sure those are studies from the US / western markets. These markets maybe saturated and hence these companies grow at anaemic rates in that part of the world. India today is where these markets were in the 70s/80s and there is a lot of room to grow - just look around you, do you think the carpenter, mason, the delivery boy are using a Gillette Mach 3? I don’t think so. Can they use it in the future - maybe yes, as their standard of living improves!