Size Of Opportunity Matters

Indian infrastructure company GVK Power & Infra recently received approval from the Australian government for a USD 10 billion investment in a coal block in Northern Queensland. Earlier this year Vale of Brazil launched its first megaship, called Valemax , with the capacity to carry 350,000 tonnes of iron ore to China.

There is such a thing as too big or too much for a market and almost every market has that threshold. As small participants in large and liquid global financial markets we often tend to forget this fact. More...

Commodities, Windfalls And Capital Misallocation

The New York Times recently published an article about Guar (http://tinyurl.com/ca6bx9h), a mundane crop that has been grown in north-western India for centuries. The reason the article caught my attention is because my family has been one of the beneficiaries of this boom

My ancestors are from the Indian state of Rajasthan and my family has roots in a small town in northern Rajasthan called Sri Ganganagar. Sri Ganganagar was established by Maharaja Ganga Singh of the erstwhile princely state of Bikaner in 1927. Ganga Singh was instrumental in building an irrigation canal that brought water from the river Sutlej in the state of Punjab to the erstwhile princely state of Bikaner. The arrival of the canal converted Sri Ganganagar into the biggest agricultural center in the entire state of Rajasthan (most of which is desert).More...

Waiting For Godot

The unending trauma of the global financial markets has drained many seasoned investors and participants. In terms of magnitude of pain endured, the 2011-2012 period has far surpassed the 2008-2009 period.

In the 2008-2009 period, markets collapsed so swiftly that most participants were frozen like deer in headlights. The sudden and severe drop in the markets had a surreal feel to them. While some pain was experienced, the intervention by authorities in the US brought back markets with a vengeance in 2009. A lot of investors who were not leveraged and did not get liquidated in the collapse, dismissed the entire episode as an aberration. More...