Earlier this year, Sigma Healthcare (ASX:SIG) completed its long-anticipated merger with Chemist Warehouse, creating one of Australia’s largest pharmacy retail and wholesale groups. The merger was officially implemented on February 12, 2025, with the new Sigma shares trading on the ASX from February 13, 2025.

You can check the stock here: Sigma Healthcare (ASX:SIG) on ASX

This merger brings together Sigma’s established pharmaceutical distribution network and Chemist Warehouse’s dominant retail footprint — a strategic move to compete more effectively in a rapidly consolidating industry.

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But Wait… Aren’t You an Index Advocate?

Absolutely. Most of my investable assets are in broad-based, low-cost index funds. I believe in diversification, time in the market, and keeping things simple.

However, I also set aside a small “fun money” portion of my portfolio to invest in individual companies I personally like, interact with, or simply find interesting. This helps me stay engaged with the business world beyond passive investing.

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Why Chemist Warehouse (via Sigma Healthcare)?

To be transparent, I haven’t done a deep dive into Sigma Healthcare’s financials. No detailed valuations, no financial modelling.

But here’s what I do have:

• Real-life experience shopping at Chemist Warehouse stores.
• Always impressed by their extensive product range and aggressive pricing.
• Locations are convenient and accessible.
• Staff service has been consistently helpful and friendly.

In an era where brick-and-mortar retail faces significant headwinds, Chemist Warehouse has remained relevant and even thrived. That counts for something in my book.

While this is far from a rigorous analytical thesis, sometimes consumer experience tells you what spreadsheets can’t.

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Skin in the Game, But with Eyes Open

This position is a small, speculative slice of my portfolio. It won’t move the needle materially, but it keeps me actively engaged with companies I interact with daily.

If it works out — great. If not — it’s a valuable lesson at a manageable cost.

For me, this approach complements my core indexing strategy. It’s more about curiosity and connection to the real economy than chasing alpha.

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A Thought on Behavior

Investing isn’t just numbers; it’s also psychology. Having “skin in the game” with companies I like keeps me grounded, and ironically, helps me stay disciplined with the rest of my boring but effective index investing.

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Final Thoughts (and Disclaimer)

To sum up:

• I’m still an index fund guy.
• But I allow myself small allocations to companies I personally respect.
• Sigma Healthcare, post-merger with Chemist Warehouse, fits that personal interest.

⚠️ Important Disclaimer:

This article is for informational and personal opinion purposes only. It is not financial advice, investment advice, or a recommendation to buy or sell any financial products.

I am not a licensed financial advisor. The views expressed are my own personal reflections and should not be relied upon for making investment decisions.

Investing in individual securities carries risks, including the risk of loss of capital. Please conduct your own research, seek professional advice from a licensed financial advisor, and consider your own personal financial situation before making any investment decisions.