Wednesday, May 5, 2010

Warren Buffet coming India......Cheers...........

Warren Buffett to visit India, won't rule out investment.:

OMAHA: Warren Buffett said on Saturday he plans to visit India next March, and would not rule out the country for possible future investments.
Speaking at Berkshire's annual meeting in response to a shareholder question, Buffett said he had decided only on Friday to make the trip, saying the company's Iscar Metalworking Cos unit "is doing very well there."
Buffett said "we do not rule out India" as a possible locale for future Berkshire investments, whether in companies or marketable securities, though bureaucratic obstacles could complicate any plans to invest, including limitations on foreign ownership.
He added that "we've looked a lot at being in the insurance business in India." Insurance and reinsurance are Berkshire's main business lines.
Demographers expect India to overtake China as the world's most populous country within the next two decades, and Buffett predicted that "people in India will be living a lot better 20 years from now."
Buffett does not disclose where he plans to make future investments, but occasionally travels outside the United States to seek opportunities or check on Berkshire investments.
Among Berkshire's investments in Asia are the Korean steelmaker Posco and the Chinese car and battery maker BYD Co.
Both have been profitable, giving Berkshire respective paper profits of $1.32 billion and $1.75 billion as of year end, according to Berkshire's annual report.

My Comments:

I think................

1) That this decision of WB to visit India next March says that he will start investing ,if atall, after that....means that
2) We are not overvalued.....and will not be overvalued in next March.....
3) I know there can be arguements that he will invest in undervalued stock.....but I am sure that when we will see where he invested, that stock would have been already called as overvalued by analyst......
4) and then the justification will start why WB is buying and the future of the Co is bright and blah blah blah.....


  1. Hi Rajeev,
    Excellent analysis. As u call it reading between the lines. I too read about WB visiting india but could never make out that this is an indication of undervalued market. This is what makes me admire you.

  2. 1)Buffett bullish on Insurance sector in India.
    Currently lots of FEAR in insurance sector.
    Is this perfect time to buy "MAX INDIA" ?

    2)Buffett predicted that "people in India will be living a lot better 20 years from now."
    Based on this predixtions, which stocks we can start accumlating?

    3)I had read somwhere you comments about buying "low floating stocks". There is stock with low float "Shriram city union finance". whats ur view on it?


  4. ramesh,
    u r on dot.....that was what i was also thinking...Max India can become a candidate for WB as he is interested in Insurance Co.....I didn't write it here....
    I donot track Shriram city so no view....

  5. For all interested readers

  6. Rajeevji, looks like Turn around for this company is right on target, think its available at a damn cheap price.......

    Decolight Cerm - Launches DOUBLE CHARGED VITRIFIED TILES BASED on Latest Technology
    Announcement: Decolight Ceramics Ltd has informed BSE that the Company has, in the last week of April, 2010, launched DOUBLE CHARGED VITRIFIED TILES in the market. This is the latest technology in Vitrified Tiles which brings in natural design on vitrified tiles through powder technology. DOUBLE CHARGED VITRIFIED TILES made out of this latest technology affords the customers the option of choosing unlimited designs and patterns.

    With the successful launching of this product last week, the Company anticipates to get more responses in the future as much better life span, natural design and print nature are the basic properties of this product.

  7. Dhiraj,
    I have already recomended at mmb 3 months back though I have not written it here....
    but yes, Decolight seems to me a buy at this rate....

  8. Sir Rajeev, thanks for the posting...One of my fund manager is dancing yesterday when he saw the news..he is even recommend some stocks which according to him WB going to pick...Only God knows what happens and this fund manager always say higher targets for stocks...

    his picks are
    1. Airtel
    4.Max India
    5.Bajaj Finserv

  9. Rajiv ji
    i like religare enterprice,max india
    both are speculative and undervalue at cmp.
    bajaj finservice is my 3rd choice.
    your views please.

  10. Rajiv bhai
    you write in dhiraj query
    I have already recomended at mmb 3 months back though I have not written it here....

    i request you please if possible send me mmb address .
    i m low educated but your big follower
    thanks and excuse both in advance

  11. Ashok,
    MMB means money control message board...and there I write as "nakul" so write that name and u will find that...I recomended 3 stocks there at that time...
    one was Rasandik Eng, another was Decolight and 3rd was Laffans Petro...
    see these link...