value investing

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...

India Is The Only One

The fear and pessimism in the world is unprecedented. However, India is the single biggest opportunity in this crisis and the only one in my opinion.

The problem at the core of the global crisis is a complete collapse of private demand. This collapse has been primarily driven by households deleveraging their balance sheets after a three decade debt fueled consumption binge. The crisis is being further exacerbated by private sector financial institutions deleveraging their balance sheets driven by new onerous regulations and (in europe) a loss of confidence in their holdings of sovereign debt. More...