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Pabrai on Indian Real Estate Stocks

Source: Pabrai Investment Funds Q1 2020 Letter

5 replies on “Pabrai on Indian Real Estate Stocks”

But he missed to write that there are no takers for the finished inventory. Value comes when there is a seller and possibility of a buyer

There are many such examples in Indian industry/realty space.
However, Sunteck and Kolte Patil do not carry very great and impeccable names in the realty space of even the relevant geographies.
As rightly said by some other reader, market price is never the sum of the cost-based and market-price based valuation of the businesses. If that had been the case, stock market, around the globe, would have collapsed because the ‘game’ in valuation only and nothing else.

The tide has gone out and people have realized that a lunch meeting with Buffet does not make you a good swimmer

Yeah, agreed. Even Buffet has lost its charm as a great investor. In fact, much of his investment in last 10-20 years has not yielded great returns. His investment in some of the ‘ consumption ‘ space way back in 70s and 80s when US economy was evolving and growing furiously, turned extremely good bets and gave stupendous returns. Otherwise in an open, growing to maturity kind of economy, he has not done quite great.

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