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Nimesh Shah:Buy in 2015 to make money in 2018

We are quite happy with the volatility. If you ask me, we always look at volatility as an opportunity. In fact we have got set of funds which only work on the benefit of volatility.

In India, historically if you see, whenever FIIs have sold for some technical reasons or problems in the West, when they have to sell India that is the best time to buy India. That is what we have always felt and it is proved historically that whenever FIIs sold if one buys there is a good chance of making money.

So, this technical correction was very good. It will remind investors also that there is risk in the market. They need to be careful when they are investing. They did need to get their asset allocation right. As a fund house we have always had this view that 2015 we expect lots of volatility to come because of international factors.

If volatility is because of international factors, invest throughout 2015 to make money in 2018. That has been our stand even four months back and that is what we have been saying even today. So, this correction to 27,000 looks very healthy to me.

We have been or are going overweight in technology. We are overweight on private banks. So, those are the sectors that we like.

Technology we have given a big call to our investors that invest in technology. Technology has corrected around 10 percent in the last one month and so with a stronger dollar and western world also doing well, technology companies are set to gain. We believe this correction in technology companies since last one week is good.

We have always been bullish on private banks. The nature of our funds are such that since we take cash position, whenever the price to book ratio of the market goes down, we go out and buy. Some of our funds are structured that way.

So, technology and banking are the sectors that we are overweight on.-said Nimesh Shah, MD& CEO,ICICI Prudential
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Why Jim Rogers hates India

“As usual, we attracted a crowd.A local man walked up behind my fiancee Paige  and put his hand on her bottom.She spun around, and there he stood,making no attempt to disassociate himself from the offense,assuming,it seemed, that he had every right to do what he had done.

To appreciate what happened next,one must remember that in India women are the lowest of the low.To call them second class does not come close.They are treated more as property than as human beings.Out in the villages,just to take one example,women are not allowed to leave their homes without the permission of their fathers or husbands.

Paige turned on this particular man,grabbed him by the shirtfront,and started smacking him.She hit him three times.Startled and clearly horrified,he scurried off as soon as he could extricate himself.It was probably the most humiliating thing that could ever happen to the man,being beaten by a woman in public,in front of all the men and women of the village.”-wrote Jim Rogers in his book,Adventure Capitalist

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Nilesh Shah: Things have started moving…

  • I met a road contractor. He bided for the NHAI project on e-tender basis and got the LOA (letter of approval) in three hours on email. In previous era, it used to take six months. The government is planning to spend four times more than last year for building roads. It will be fair to say that ‘acche din’ (good days) are coming for the road sector.
  • I met an iron ore miner. As you are aware, many iron ore mines are closed due to court orders. India had to import iron ore in last few years to run its steel plants. Iron Ore mining is likely to begin in Odisha in near future boosting domestic production by more than 20%. Many coal mines will also become operational post auctions to sustain mining boom.
  • I met a Railway contractor. He mentioned that railway orders have started flowing with transparency in tendering. As the rules of games are changing there is a little bit of turmoil as old business models are giving way for new and better business models.
  • I met a power equipment supplier who mentioned that there is a hope for future as PSUs have started giving orders.-wrote Nilesh Shah, MD Kotak Asset Management
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Parag Parikh dies in car crash

An investor from India who attended Berkshire Hathaway’s annual meeting Saturday has died in a two-vehicle crash, and three other people were hospitalized with injuries.

The Omaha World-Herald reports (http://bit.ly/1AymdoX ) the crash happened before 7 a.m. Sunday in midtown Omaha. A 2014 Volkswagen Jetta was struck by a 2011 Chevrolet pickup.

Omaha Police said 60-year-old Parag Parikh of Mumbai, India, died at the Nebraska Medical Center. His wife, 59-year-old Geeta Parikh was in critical condition with head and chest injuries.

Two others in the Volkswagen — 42-year-old Rajeev Thakkar of Mumbai and 29-year-old Raunak Onkar of Maharastra, India — sustained non-life threatening injuries.

The truck’s 63-year-old driver was treated for a shoulder injury at a different hospital and released.

 Police Sgt. Chuck Casey said Thakkar was driving the Volkswagen at the time of the crash. He paused at a stop sign before pulling forward into the path of the pickup truck.

Police say Thakkar might face charges related to the crash.

Shailesh Shah says Parag Parikh was a stockbroker and his brother-in-law. Shah told the World-Herald that all four were in Omaha to attend Berkshire’s shareholder meeting.

“Parag was a very nice gentleman, very successful,” Shah said. “It still has not sunk into me about the death of my brother-in-law. It is very sad.”

Shah said all four of the people in the Volkswagen were on their way to the airport at the time of the crash. Thakkar and Onkar both worked for Parikh’s investment firm.-from Yahoo

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Howard Marks on Warren Buffett

Source:Ben Carlson

I found this line very interesting-“Developing a network of contacts brimming with good ideas”