When it comes to investments, beauty is in the eye of the beholder.

Some people look for dividend growth. Some look for strong balance sheets. And quite a few, it appears, like burrito chains. Others, like me, start to like a stock or sector purely because everybody else seems to hate it.

Imagine my delight, then, when I stumbled across the state of drug manufacturing stocks at the moment.

Except from software, this industry is home to more Wide Moat shares than any other. What’s more, several of its most successful companies are priced like they’ll never have another blockbuster drug again.

In the first of a two-part series released earlier this week, I looked at why the drugmaking business is home to so many high quality companies. In part two, I highlighted three (of several) shares in the industry that our analysts think are five star picks.

A five star Morningstar rating means that a stock trades at what our analysts view as an attractive discount to their estimate of true value. I think it’s fair to say that Guzman y Gomez (ASX: GYG) does not meet that criteria at the moment.

In their research ahead of Guzman’s initial public offering, our analysts acknowledged Guzman’s promising growth so far and the attractive economics of successful fast food chains.

Getting to the $21 offer price, though, would have required our analysts to take much of Guzman’s target of 1000 Australian stores as a shoo-in. Unless Guzman proves it has a moat, that could prove challenging.

To learn more about Guzman’s business and what growth assumptions are being baked in, go here to see my pre-IPO conversation with Morningstar analyst Lochlan Halloway. And while we’re on the topic of 'quick service restaurants', you can also read my deep dive on what investors can learn from fast-food hall of famers like McDonald’s.

Investors have always needed to cope with other people making fast gains in stocks that look overvalued. Sometimes, though, a stock that looks richly valued on metrics like P/E or dividend yield is anything but. Earlier this month I explained why P/E can be deceiving and outlined three shares with high P/E ratios we think are undervalued.

Highlighting shares we think are undervalued is part of my job. I also enjoy it because it gives me an insight into how our analysts think. My hope is that you will pass on the vast majority, if not all, of the stocks I feature in my articles.

This isn’t because I think the research is duff. It's because I think that constantly having a new hot stock idea in your head can do bad things to your returns. Especially if your new ideas are always forcing other things out of your portfolio before they bloom. I reflected on my struggles with this in the past in How to avoid throwing away your investing edge.

Writing that article was part of a broader effort to, as my colleague Mark LaMonica says, think more about investing and less about investments. A big part of that is thinking about where you want your investments to take you. And for many of us, the destination we want to reach is a comfortable retirement.

Earlier this month, Vanguard published their annual How Australia Retires Study. It suggested that over half of Australians are scared of outliving their retirement savings. Meanwhile, only 27% of the working Australians surveyed were very or extremely confident about retirement. If you are in the other 73%, here are some other pointers from the Vanguard study that could help you get there.

Thanks for reading this month. By the time I write my wrap for July, I'm hoping that my sleeping pattern is back to normal and that England have won a major tournament for the first time in my life. It wouldn't surprise me if Guzman reach 1000 stores first.

P.S. If nothing really did it for you here or you'd like to read more about a certain topic, please write to me at [email protected] and let me know.