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.