Category: Excerpts

I feel uncertain, more uncertain about the future now than I did 20 years ago.

The way it plays out is I have more stocks in my portfolio now than I had 20 years ago.

I know for some people this becomes the issue of don’t you have enough conviction?

And I hate that word in investing, because it puts us on a spot.

So, do you have enough conviction?

Can’t you put all your money in this if you feel that strongly?

No, I never feel that strongly. I don’t have that much conviction. Maybe you do.

And there are investors out there, I think, who overestimate their capacity to value companies and overestimate the capacity of markets to correct and then underinvest.

They might still make money for a while, but at some point in time, their portfolios will blow up

said Aswath Damodaran

Source: Forbes

There are three main wholesalers, AmerisourceBergen, Cardinal Health, and McKesson Corporation that account for more than 90 percent of wholesale drug distribution in the United States.

With multiple suppliers, wholesalers end up having a lot of bargaining power. Additionally, there are always new suppliers entering the market, who are willing to drop prices further to enter the market. So wholesalers negotiate with the existing players to offer the same price, for them to retain their existing market share—hence constantly hitting the prices.

This leads to almost 90 percent price erosion, from the price at which the innovator sold the drug versus the generic drug prices.

Source: Investor Meet Transcript of Vesuvius India Ltd