X

Sign up for Equitymaster's free daily newsletter, The 5 Minute WrapUp and get access to our latest Multibagger guide (2017 Edition) on picking money-making stocks.

This is an entirely free service. No payments are to be made.


Download Now Subscribe to our free daily e-letter, The 5 Minute WrapUp and get this complimentary report.
We hate spam as much as you do. Check out our Privacy Policy and Terms Of Use.
Would Buffett Ever Consider Investing in Indian Pharma Stocks? - Views on News from Equitymaster
  • MyStocks

MEMBER'S LOGINX

     
Login Failure
   
     
   
     
 
 
 
(Please do not use this option on a public machine)
 
     
 
 
 
  Sign Up | Forgot Password?  
The Equitymaster Research Digest

Would Buffett Ever Consider Investing in Indian Pharma Stocks?
Apr 20, 2016

It is no big secret that Warren Buffett absolutely enjoys moats. Indeed, companies with wide moats are the most resilient businesses and the best shareholder wealth creators. I have talked about how brand power, low-cost advantage, and high switching costs are good quality moats because they equip companies with pricing power even when there is competition. Companies in the FMCG, commodities, and banking sectors come to mind.

Do pharma companies enjoy moats? It depends.

Broadly speaking, there are two kinds of companies in the global pharma market - the innovators and the generic companies.

Classic examples of innovators are the big pharma companies such as Pfizer, Novartis, GlaxoSmithKline (GSK) Plc, Sanofi, and the like. Having said that, innovators aren't necessarily Big Pharma. Many of the small biotech companies that have sprung up in the developed world are also innovators because of new molecules that they have launched in the market.

To Read the Full Story, Subscribe or Sign In


Become A Smarter Investor In
Just 5 Minutes

Multibagger Stocks Guide 2017
Get our special report, Multibagger Stocks Guide (2017 Edition) Now!
We will never sell or rent your email id.
Please read our Terms

MARKET STATS