India tycoon has cash but nowhere to invest

[shalab]

Looks like he should buy berkshire, I would if I were him to preserve my capital.

 

http://finance.yahoo.com/news/india-tycoons-got-tons-cash-064653323.html

[smathew]

He got an excellent track record of compounding the capital . He compounded at 28% for 23 years

 

http://fundooprofessor.wordpress.com/2011/03/26/the-grand-strategy-of-ajay-piramal/

[smathew]

I read a little bit more about this guy - looks like he wants more publicity for more deals.

 

Here is one of his plans to invest 1.5 billion in U.S/Europe.

 

http://www.ft.com/cms/s/0/d8997a7c-cdaf-11e0-bb4f-00144feabdc0.html#axzz1ho22EfqJ

 

Also, the guy owns so many companies he looks like a mini berkshire. May be some of the folks who are familiar with Indian markets can comment - why are there so many conglomerates in India? Is this because a few businessmen/families control government policy and stifle external competition.

 

http://en.wikipedia.org/wiki/Ajay_Piramal

 

I feel that is mainly because of the socialist past india had. Raising capital was tough for outsiders those days. Those who were already in the game where able to start new ventures, by getting capital from from their existing business .

If you look at  the indian conglomerates all of them were formed those days or before . After 1990 not many conglomerates were formed.

[netnet]

this guy looks pretty impressive, at least on first blush.  (Of course I said that about Big Liar, I mean Biglari.)

 

He does have a long track record.

[Liberty]

 

I feel that is mainly because of the socialist past india had. Raising capital was tough for outsiders those days. Those who were already in the game where able to start new ventures, by getting capital from from their existing business .

If you look at  the indian conglomerates all of them were formed those days or before . After 1990 not many conglomerates were formed.

 

Also, as per an Economist article, it seems like infrastructure is so bad in India that many businesses are set up to do almost everything they need themselves rather than rely on the state. Businesses bigger than a certain size thus tend to sprawl and start to do a bit of everything..

[turar]

Piramal does seem like an Indian Buffett of sorts. And Piramal Healthcare looked cheap with all that cash last time I looked at it couple of months ago. I just wish I could trade in India.

 

The Economist article doesn't mention the fact that India restricts foreign investment by retail investors, as one of the possible reasons. They also basically compare figures before the financial crisis hit and after and are completely missing that elephant in the room.

[rohitc99]

here is more about ajay piramal

 

http://fundooprofessor.wordpress.com/2011/03/26/the-grand-strategy-of-ajay-piramal/

 

i am baised about him as i am invested in the company. ajay piramal is a smart capital allocator  and follows buffett & munger (see  the picture - poor charlie's almanac is on his coffee table).

[netnet]

A few thoughts:

 

1.  Is it possible to do a retail transaction in India.  I had always thought it was next to impossible.

2,  Ajay Pirama has an alpha on par with Buffett, 11% greater return than the market--28% versus 17%.

 

 

[beerbaron]

A few thoughts:

 

1.  Is it possible to do a retail transaction in India.  I had always thought it was next to impossible.

2,  Ajay Pirama has an alpha on par with Buffett, 11% greater return than the market--28% versus 17%.

 

From what I read it's quite hard... too bad because the valuation is dirt cheap.

 

BeerBaron