The Future Giants

My last post on the budget got me e-mails from a few of you telling me how it motivated you. I am glad that it was a source of motivation and inspiration. Every great thing starts out with motivation and inspiration. The budget came and went. Most people have gotten over it and there have been endless discussions over it.

However what has caught my attention is the interest being shown by private enterprise now in fields of agriculture. Today it is a know fact how people like Mukesh Ambani and Sunil Mittal are keen on revolutionising the agricultural sector.

The main problem in Indian agriculture today is caused due to improper distribution systems and a lack of private enterprise. Reliance Industries has always knows to bring about revolutionary changes in whichever sector they enter.

We know what happened with Dhirubhai Ambani in areas like polyester and refining. The same model can be replicated in agriculture. Today Indian agriculture is utilizing only 20% of the capacity. The reason being, farms are hesitant to produce more as the market is unable to absorb it all due to very poor systems in place. Even though food prices are rising the poor farmer doesn’t get the right price due to so many middle men and a corrupt bureaucratic system.

I know many of you might be wondering, what this has to do with the stock markets or investing? How are you related with the farmer?

The main thing about successful investing is looking at new developments and concepts which can bring about revolutions irrespective of which sector they are in. I had invested in Bharti Airtel when the telecom revolution had not started fully. Just the fact that I detected a trend helped my investment in Airtel grow exponentially.

Today I feel companies like Bharti and Reliance are at the start of what is going to be a new green evolution. Imagine over 700 million people having their incomes increase by over 5 times.

From what I can understand Mukesh Ambani plans to put money in their hands, and once they have the money make them spend on everything urban India has had for so many years. His retail venture would benefit immensely from this. More money earned means more money spent.

The potential is huge and all of us must start taking notice of it. It is always rewarding to enter a sector where development has been minimal and then revolutionize it.

In fact a recent article and report by Morgan Stanley puts Reliance Industries as a future giant among Asia’s 20 best companies. Brother Anil Ambani is there on it too with Reliance Communications. You can read more about it here at Dr. Krishna’s blog.

The best way to invest is to plant seeds today that will turn out to be wonderful trees which bear lots of fruits in the future. Ignore the short term fluctuations now and stop worrying about the Sensex falling 500 points and invest in companies which have real fundamental growth ahead of them.

Investing can create wealth not only for us but also fuels entrepreneurship which changes lives.

Happy wealth creation and have a day filled with smiles!
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