30 min with $7Bn Fund Manager, 25 Years of Investing Revealed | 1% Club Show Ep 59

"The reason being that people who are 25, 30 years old today, their investment journey and their careers are going to coincide with the phase when India becomes at least a middle-ass country. Yeah. You know, we've been poor and lower middle class up until now. And in the journey of any country, there will always be that phase where maximum number of people are of productive age. You know, because 15 years back in India, most people were kids, right? And I believe that 30 35 years later most people will be older or nearing retirement. Right? But next 20 30 years what's going to happen is that most people in India will be between 20 and 60 and at the productive age. Correct? So in the next few years it's well known that India will be the biggest consumer force and the biggest labor force."

"So you know what happens is that uh if that's the nominal growth, the fact is that for Sensex, Nifty, all these indices which we track the earnings of their companies is also in that vicinity 12 to 13% over last 30 years. Growth of earnings. Earnings means profits. Profits. Profit growth has been 12 13% of the biggest companies in Nifty and Sensex. Absolutely right. And the fact is that the price movement of Sensex and Nifty meaning the growth in the index itself. So GDP growth, profitability and the stock price that itself has also compounded about 12%. Plus these companies you know there is 1 and a half to 2% dividend per year. So the actual movement of Sensex and Nifty itself is 14%."

"Uh what kind of returns do these VCs generate? So if you look at a period of say 7 to 8 years, my sense is about 4x 3 to 4x is what I have experienced. Wow. Really? In over 7 years, they'll forex your money. Yeah. I mean, as we speak right now, for example, one of the funds I have invested four years back is currently 3x."

"So now the government bond the government borrowings will reduce right the interest rates is it's already on the downtrend it's already on the downtrend meaning you're saying the real estate will spike now commercial real appreciate will appreciate because the government yields are reducing and this is that correlation that we are seeing it it plays out you know"

"So in 2020 if you look back and saw which sector had the least amount of capital investment in the previous 10 years and which sector saw the highest consolidation that you know number of players folded up competition went down this sector was completely dissed nobody thought it would ever recover that was real estate in 2020"

"It's the only asset for which a youngster can get finance. Nobody's going to give you money to put money in the stock market. Correct? Right. The only asset, it's the only asset where you will get leverage at a young age."

"Our market on many days is nervous purely because NASDAQ is falling 3%. Correct? So these are the times when foreigners sell in India for reasons which are beyond India's economic issues that will create a buying opportunity and you're saying right now that is kind of happening right now it's panic in Indian market because of what's happening in US right now it will persist I think another 3 to 6 months it will persist that way we will keep yo-yoing based on what is happening there so it's a sideway while our domestic conditions are slowly and steadily improving we are still dancing to their tunes on many days I think we will keep dancing to their tunes in the next 3 to 6 months but ultimately panic out there will create opportunity out here."