Is the liquidity tide about to turn?
Source: ValueWalk
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Insurance Reforms: Dal Makhni Style
• 1998: Yashwant Sinha moots opening up insurance sector, creation of IRDA in NDA’s first budget.
• IRDA Bill goes to Standing Committee.
• Sinha moots 49 per cent foreign investment—26 FDI+23 FII
• 1999: Congress—post Antony Committee—forces cap of 26 per cent in IRDA Act.
• 2004: Congress comes to power.
P Chidambaram announces hiking FDI in insurance to 49 per cent.
• Left in UPA I and TMC and DMK (members of NDA that passed IRDA Act) in UPA II oppose it.
• 2005: Law Commission and IRDA back hike in foreign equity/ownership.
• 2008: Bill introduced in Rajya Sabha. 2009 Bill referred to Standing Committee of Finance.
• 2011: Standing Committee says “a greater role for foreign capital in insurance sector may not have the desired impact” and that “increased role of foreign capital may lead to the possibility of exposing the economy to vulnerabilities”. Chairman of Committee: Yashwant Sinha.
• December 2014: Congress and BJP agree to agree.
• March 2015: Jayant Sinha successfully pilots Insurance Laws Amendment Act.
• Foreign investment hiked to 49 per cent—26FDI + 23 FII—exactly as in the 1998 draft.
Think about it. It took a whole generation—from father to son—for this piece of reforms to come through.–from IE
Deepak Shenoy at Capital Mind has done a nice review of the Adlabs Imagica IPO
But I found his disclaimer even better than the review:
Very important note: Look, we’re in a bull market. Any share can go up. In 2006, We didn’t like the GMR IPO issue. It went from 250 to 800. We looked like fools. Then after a 10:1 split the price is now less than Rs. 18 (which would be Rs. 180 for the 2006 IPO holders). That makes us look better. But remember, the price went 4x before it fell – anything can happen, don’t just trust us. We have effectively ditched a potential 4x return earlier. That’s our disclaimer.
(Disclosure: I am market making in the shares of ICICI Pru Life)
ICICI Bank Ltd , India’s largest private-sector lender, is in talks to sell part of its stake in a life insurance joint venture to Temasek Holdings Pte and Carmignac Gestion for about USD 300 million, according to a Media report.
The lender plans to complete an agreement to sell about 5 percent of ICICI Prudential Life Insurance Co. by the end of March, the report said, citing unnamed sources. ICICI owns 74 percent of the joint venture, with the remaining 26 percent held by UK insurer Prudential . A Temasek spokesman declined to comment
To make money in the markets, you have to think independently and be humble. You have to be an independent thinker because you can’t make money agreeing with the consensus view, which is already embedded in the price. Yet whenever you’re betting against the consensus,there’s a significant probability you’re going to be wrong, so you have to be humble.
There’ s an art to this process of seeking out thoughtful disagreement. People who are successful at it realize that there is always some probability they might be wrong and that it’s worth the effort to consider what others are saying ; not simply the others’ conclusions, but the reasoning behind them ; to be assured that they aren’t making a mistake themselves. They approach disagreement with curiosity, not antagonism, and are what I call open-minded and assertive at the same time.This means that they possess the ability to calmly take in what other people are thinking rather than block it out, and to clearly lay out the reasons why they haven’t reached the same conclusion. They are able to listen carefully and objectively to the reasoning behind differing opinions.
When most people hear me describe this approach, they typically say,”No problem, I’m open-minded!”;But what they really mean is that they’re open to being wrong. True open-mindedness is an entirely different mind-set. It is a process of being intensely worried about being wrong and asking questions instead of defending a position. It demands that you get over your ego-driven desire to have whatever answer you happen to have in your head be right. Instead, you need to actively question all of your opinions and seek out the reasoning behind alternative points of view.
Operating this way just seems like common sense to me. After all, when two people disagree, logic demands that one of them must be wrong. Why wouldn’t you want to make sure that that person isn’t you?–wrote Ray Dalio