The Times of India has published a rare interview with Ajit Jain which coincides with Warren Buffett’s arrival in Bangalore today. Mr. Buffett’s trip to India coincides with the company’s entry into the Indian auto insurance industry through Berkshireinsurance.com, a majority owned subsidiary that has a direct sales strategy similar to Berkshire’s GEICO division. Read this article for more details.
Last year we published a short article on value investors finding opportunities in India and highlighted the record of Amitabh Singhi who spoke at the Value Investing Congress in October 2010. Although China has received the bulk of attention from emerging market investors in recent years, the massive market opportunities presented by the rapidly growing Indian economy are difficult to ignore. Read this article for more information on Rahul Saraogi, an Indian investor scheduled to speak at the upcoming Value Investing Congress West in Pasadena.
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. Read this article for more details and a video with a prominent Indian value investor.
The Economic Times of India has reported that Berkshire Hathaway is making a modest entry into the Indian insurance market through a purchase of a corporate agency. Berkshire will set up a wholly owned subsidiary in India which will operate a corporate agency selling auto insurance policies issues by Bajaj Allianz General Insurance. The subsidiary will invest Rs 500 million, or US $10.9 million to set up the necessary infrastructure. Read this article for more information.
The Economist interviewed Stephen Roach, Chairman of Morgan Stanley Asia. In the interview, Mr. Roach comments on the need for China to increase domestic consumption which is a step that many have recommended in recent years. In order to accomplish this goal, Mr. Roach believes that the Chinese people need to have more confidence in their overall level of security when it comes to unemployment, pensions, and health care. The interview also covers lessons learned from Japan’s long downturn and prospects for India’s economy over the next several years.
Read this article for more details and the video.