I am a pure bottom-up stock picker. So, till I am convinced about individual companies doing well, I dont bother too much about sector tailwinds. And I have seen people pick winners by focusing on sectors. So, it depends on individual stock pickers.
Talking about Whirlpool, the logic while buying in 2007 was that in Rs. 400 cr market cap, I was getting an American brand of consumer durables. WMs and Refrigerators formed 90% plus revenues. I saw that they werent in ACs or other durables like microwave or water purifiers. In my interaction with the management, they mentioned about getting into other durables. The market penetration of durables was very low that time (even today, market penetration of refrigerators is less than 22%, for other durables it is less than 15%). So, I decided to buy and hold the stock till losses dont increase too much. To track sales, I used to visit my neighbourhood Vijay Sales showroom once every quarter. I hadnt predicted Whirlpool will grow this well this soon. I just reviewed the stock periodically and decided to hold till I see management doing something weird. I have seen my dad holding ITC for 20 years (30 bagger) and Gujarat Ambuja for 22 years (60 bagger). That made it easier for me. Plus I have mentors like Hitesh sir and Manish sir who keep telling me “dont fall in love with your stocks”. I cannot thank these three enough.