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Excerpts Interview

Why has Mohnish Pabrai started investing in India?

(Q) Why change of heart on India ? 

Note : This question was in relation to Mohnish’s recent investments in India, which had avoided thus far.

(A)I had stayed away from India as most of the companies tend to be family owned and lots of them have governance issues and hence we didn’t prefer to invest in family controlled businesses.However, we found few opportunities this year, which fit our criteria. One of them is The South Indian Bank.

Why South Indian Bank –

  • Unlike west or U.S it’s hard to get a banking license in India

  • 60% of the country still don’t have a bank account

  • Growing middle class are embracing banking and opening bank accounts

  • It’s not a family owned business -from BitsBusiness

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Chart

Chart:Winners and Losers of Falling Oil Prices

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Video

Demand for cheap smartphones rises in India

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Links

Linkfest:October 27,2014

Some stuff I am reading today morning:

Delhi realty stuck in no man’s land (ET)

Why traveling in India is more expensive than trips abroad (Mint)

30 stocks for strong potential ROE gains (BS)

10 insane things we believe on Wall Street (TRB)

Shareholder Value Maximisation is the dumbest idea in the world (CFA Institute)

Tom Murphy taught Warren Buffett how to manage a company (Quartz)

McDisaster:Fast Food is dying (DailyReckoning)

Execution (Big Picture)

Why being an entrepreneur is tougher than running Merill Lynch (Inc)

Valuations and Asset Allocation (Swedroe)