Look at plantations for example, every 2 years it has this 'wage hike' drama.. Big companies like KGAL, KOTA, NAMU may survive but for others there may be problems reporting higher EPS. Then rainfalls might hinder rubber crop. Ont the other hand the same rainfalls might assist hydro plants to up their revenue..
When u deal with shares, its better to look at the companies that have competitive advantages that others hardly can match.. And when u buy its better to buy leaders as well as emerging leaders..
1. Superb customer relationships
2. Strong know-how and in n outs of their business, product line, etc...
3. Products with added features and strong competence that stand out from the competition
4. Innovative, energy-efficient products, solutions and services
5. wide production network
6. Ability to cater to growing markets
7. Knowing their competitors well and especially their strength.
The above is only a very brief list.. Others I hope, will add more value..
Well the idea is; Even with dark clouds, u should try to see the silver linings.. If there ain't, forget it..
For example, loss making companies forever wont make losses, when they hit bad, we need to find their core competencies that can make them up again.. If they dont, we should not waste our time in future magic that directors can do. If they diversify, that's again something to look at.. Then again the industry they diversify may matter.. This is where we think of buying before others do..