The discussion took place at PMS AIF World’s Crystal Grazing 6.0 event on 14th February. Cyclical investments can generate significant short-term returns (25-35 percent over 12-18 months) However, structural investments offer a more stable trajectory, compounding at 15-18 percent annually over 15-20 years. In commodity-driven businesses, factors like global demand, supply chain disruptions, and geopolitical tensions influence profitability, making them inherently cyclical. In contrast, businesses in consumer goods, pharmaceuticals, and financial services often possess the ability to drive sustainable growth beyond temporary market conditions. The conversation also addressed the limitations of forecasting and valuation models. Ultimately, while structural investments remain the preferred route for long-term wealth creation, the evolving nature of sectors means that investors must continuously reassess their strategies. The views and opinions of the investment experts on Moneycontrol.com are not those of the website or its management or its investment experts. For confidential support call the Samaritans on 08457 90 90 90, visit a local Samaritans branch or click here for details.
