INSUBCONTINENT EXCLUSIVE:
NEW DELHI: Being a straight arrow is the path to be wealthy, shoots ace investor Mohnish Pabrai
In an exclusive interaction with ETNow, he said one needs to be a harsh grader while picking any company
"There should not be any error in the management, books of the company
It doesn't matter of it gives 100 bagger returns in future," he was blunt.
Pabrai went on to say high business uncertainties coupled with
low risks lead to high returns
"Saw a classic example of low risk uncertainty in real estate 18 months ago," he added.
He sees a lot of tailwinds for the Indian market as
there are a lot of smart entrepreneurs
However, it's difficult to predict future of Indian markets, he admitted.
To a query on the recent correction in Rain Industries, he replied
there is little drama in the company
He disclosed that he has a higher position in Rain Industries than three months ago
Pabrai also expressed his wish if he could buy more in Rain Industries, but he has his eyes firmly on the cap
The scrip plunged 27 per cent in May
About Piramal Enterprises, he said the company is a blue chip, high quality business with relatively low uncertainty
"Ajay Piramal is focused on delivering shareholder value in ethical ways," Pabrai added.
The author of The Dhandho Investor sees some
element of bubble in the housing finance space
"But Repco Housing Finance is a little unusual, given the demography it's serving
It doesn't have any competition there," he said
Pabrai expects Repco's lending discipline to continue in future
On IndiGo airlines, he said, "Indigo is a relatively better-run airline than many others
Have always travelled by IndiGo against full-service airlines when in India."
About recent developments in ICICI Bank, Pabrai said corporate
ethos in India is not at a level where the US' is
But he acknowledged that it's getting better
"Enlightened investors have come to realise that honesty is not just the best policy but a lucrative one," said the market guru
However, he finds no substance in allegations against the beleaguered CEO, Chanda Kochhar
