India’s widely followed SENSEX index is approaching record high territory and many investors are once again looking at this rapidly growing emerging market as a potential source of future profits. With nearly 1.2 billion people, India is home to over seventeen percent of the world’s population and is expected to overtake China’s population in the coming decades. With a vibrant democracy, India’s growth is often less organized when compared to China’s authoritarian system. A recent article in The Economist characterized the rivalry as the “contest of the century” both because of border disputes and the race for economic dominance in Asia.
While China has received more attention from investors in recent years, India has an active following among value investors. Last year, the Simoleon Sense blog published an interview with Chetan Parikh, a well known value investor. What seems to come through from the interview is that the principles of value investing know no borders. While local knowledge and insight is invaluable, the same concepts used to find value in the United States can be applied worldwide.
Amitabh Singhi is another Indian value investor with an excellent track record who is scheduled to speak at the Value Investing Congress next month. According to the Value Investing Congress website, Mr. Singhi’s Surefin Investment fund has returned 29.8 percent annualized, net of all fees to investors, since its founding in 2001.
Mr. Singhi spoke at the Value Investing Congress in Pasadena earlier this year and had many interesting observations regarding the Indian market based on a follow-up interview with Morningstar. In particular, India seems to be fertile ground for small cap investors given the large number of under followed companies that are listed. Of course, local knowledge is important so this field may not be suitable for most American investors. The Morningstar interview with Mr. Singhi appears below.
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Mr. Singhi will speak at the Value Investing Congress in New York which is scheduled for October 12 and 13.
Readers of The Rational Walk qualify for a $300 Discount for the Value Investing Congress. Be sure to act quickly because the discount expires on Sunday, October 3. Use Discount Code N10RW8 to qualify for the special rate.
Disclosure: The Rational Walk receives a referral fee for readers who register for the Value Investing Congress via this link.2 Comments on Value Investors Find Fertile Ground in Indian Equities