Reduce Simran Farms and some more thoughts
While Simran Farms continues to rise, it would be better to reduce from 80+ Rs levels as there is no clarity on sharing money with minority shareholders. Management has doubled their salary without mentioning when or if the dividend will be paid.
Selling now may look like a mistake in hindsight, happy to be wrong than sorry, and I may end up buying again @ 200 Rs but for now, until they mention and pay dividends I will gradually reduce stake. Happy to buy at higher levels again when credibility through dividends is established.
I’ve pondered over this a few times, as a generalised blanket statement “Indians love money but lack equivalent passion”. Nor do their products appear let alone dominate in supermarkets across the world, global take off is an issue. Hawkins of Hawkins Cooker was borrowed from an English company, Prestige part of TTK Prestige again from a UK company, Eveready brand in India fell into Indians hands due to Bhopal Gas disaster. Where is the classy company that has gone global built in India by Indians ? Part of the issue is 200+_ years of Industrial revolution skipped India by in British rule. I would attribute that to lack of shrewdness in Indians again, a lesson still not well learnt.
There is difference between honesty, integrity, kindness and shrewdness and they are not mutually exclusive. As as wise man said, “One should be softer than flower when kindness is concerned but stronger than thunder when principles are at stake”. Its interesting to note cultural differences in east and west. I also feel that those in western world who dont understand the meaning of word “humility” and have to pull down the pants of opponents to win elections as psychologically stunted in their development and growth due to environmental reasons. Its a long debate, and I can go on…
Buffett considers enthusiasm as single most important criterion while making purchases, not price, nor even brand, while buying great companies. Comically attributing his success to lack of oversight in companies that Berkshire loosely controls, astute Buffett never buys out a business from management that is looking to cash out and retire.