Views on Life & on Equity Investing

Wonder, Wealth & Abundance

The miracle called India

with 6 comments

My father informed me a few facts about India, roughly15 years back, something that he believed would shock me.

Since then the outlook has not improved. One of the hideous facts that he informed was – Police Stations in north India are sold in auction system to highest bidder / head cop / SHO. Police Stations are after all a business with discounted cash flows of illegal revenue streams. Capitalists would be inclined to buy into these public monopolies only if they were listed.

Worth checking a few fun facts of similar proportions from this episode.

http://www.satyamevjayate.in/Dont-Waste-Your-Garbage/EPISODE-3Watchvideo.aspx?uid=E3-EV-V1&lang=hindi

Some of the learnings from this episode is:

– It takes 20 Crores to become MLA
– It takes 100 Crores to become MP

(What kind of favours have to be returned for the sum of money spent, to whom?)
– Fake marriages happen in India to give party to people to win votes ( for 500 Rs they take away 10-30 Lacs per person owing to them in schools, medical care, national resources)
– Ambulances carry black money with no patients
– All licences for schools, hospitals, telecom, coal, mining are sold for thousands of crores, main reason for India’s poverty
– Garbage disposed by MCD or all municipalities in India is provided for a cost to contractor for thousands of crores (most of it taken back by politicians elected in power for a 500 Rs cost per person), meaning we all pay money, thousands of crores per annum to clear garbage in New Delhi, Lacs of Crores for cleaning up whole India
– There are private players who are willing to take up Garbage for FREE, not only FREE but they are willing to pay back Govt. to collect KOODA/GARBAGE, but Govt. is not giving them. It can be recycled and made into compost/recycled plastic/paper etc.
– But there is a Big nexus of Gundas/Goons/Policiticans, they dump Garbage and make mountains of garbage in landfills, that causes cancer in whole environment and leeches into underground water with toxic and poisonous chemicals
– Lacs of crores are stolen every year from our Tax
– Everybody is paying Tax in India including Rikshawala, 66% tax is indirect meaning through toothpaste, soap, water, clothing etc. 33% tax is direct from Income.
– More than 90% tax is stolen by politicians
– Govt sells iron ore to 27 Rs a tonne which is sold for thousands of Rs in market
–  Nearly 20% of Member of Parliaments of India have murder and rape case against them. But country was up in arms against only one such high profile case.


Given the crystal clear view of situation. Why should Government workers perform their duty honestly, why should public sector bank officers be fair and not simply steal the money like their Senior counterparts. Afterall imitation is the sincerest… Does that also mean Can Fin Home, a company I am interested in not investment worthy?


Written by amitdipsite

May 7, 2014 at 7:06 am

Posted in Uncategorized

6 Responses

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  1. Of course YES! the owners interest is not aligned with those of shareholders. Stock can rise speculatively in short to medium term, but longer term wealth creation is doubtful though.

    PV

    May 7, 2014 at 9:52 am

  2. Yes.. These are the reality behind the scenes..

    myvaluepickportfolio

    myvaluepickportfolio

    May 8, 2014 at 5:38 am

  3. Housing Loan looks like a great 20+ year story. Housing companies should grow well barring any crazy developments.

    Thailand is over leveraged but provides a context. Per Capital of Thailand is 6000$, Per Capita of India 1800$.

    Mortgage Debt in Thailand 67,000 Rs per capita.( 4 Trillion / 67 million population)
    Mortgage Debt in India 6,500 Rs per capita. (8 Trillion / 1.2 billion)
    Mortgage Debt in Bangladesh 2,000 Rs capita. ( .3 Trillion / 150 million)
    Mortgage Debt in USA 21,60,200 Rs per capita ( 70% mortgage / gdp ratio)
    Mortgage Debt in Australia 43,20,000 Rs per capita ( 85% mortgage / gdp ratio)

    Amit Arora

    May 8, 2014 at 9:37 am

  4. http://www.nicmr.com/nicmr/english/report/repo/2013/2013sum08.pdf

    Annual Mortgage loan is 1,00,000 Crores BDT in Thailand (6.6 Crore population) which is 4 times TOTAL Outstanding Morgage Loan 25,000 Crores in Bangladesh (15 crores population).

    Amit Arora

    May 8, 2014 at 9:51 am

  5. Great free course on those who live in awe of wonders of reality

    https://www.coursera.org/course/einstein

    Ideas and Opinions by Einstein also worth reading

    Amit Arora

    May 10, 2014 at 8:34 am

  6. Amit.. Would like to bring your attention towards ARROW COATED. I am sure you must have heard of this one. Any inputs that you can share on this potential story will be very much helpful. Though concerns remain on its balance sheet and accounting standards, the bet here is on future prospects.

    Discl: Entered in it at 100.85 rs yesterday.

    Mads

    May 11, 2014 at 10:07 am


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