The best investment opportunities in India lie in the “boring sectors” and not in the high-growth industries that seem to attract the most attention, according to Marcellus Investment Managers’ Pramod Gubbi.
Over time as the company focused on its three necessary parameters for investment — clean management, reinvestment into high-return business verticals, and high barriers of entry — Gubbi realised that companies that were emerging were involved in producing basic goods or services.
Often the best investment opportunities are where it’s boring, not spectacular and has built massive barriers to entry, which will prevent competition from coming in, the founder of the portfolio manager, which managed Rs 2,131.9 crore of assets as of August, told BloombergQuint in an interview.
High-growth industries, on the other hand, are often destroyers of economic profit, he said, citing the…