Indigenous Investors Weekly Insights!
Top 3 well curated stories from the stable of Indigenous Investors incase you missed them. These can range from finance to sports, depends on what made the headlines. Stay tuned.
At Indigenous Investors, we pride ourselves on a simple but powerful habit: reading for 5 hours every single day. It’s something we’ve shamelessly borrowed from the Oracle of Omaha, Mr. Warren Buffet. To share the wealth of knowledge we uncover, we’re bringing you 3 top stories that you may have missed this week. If there’s a topic you want us to cover, drop us a line! We’re always excited to read more and refine our process.
Story #1: Unchecked inflation can hurt manufacturing (click here)
RBI, in its November 2024 bulletin has put out a statement warning that unchecked inflation can hurt manufacturing prospects in India. Whereas the food inflation is the biggest culprit that is keeping our inflation number above our target band of 6%, our economy has already experienced prolonged high inflation and will now soon experience a big drop in private investments due to the same.
It seems like inflation has got a permanent seat in our weekly article, just like Mr. Shaktikanta Das has got his at the helm of RBI.
This one is hard to miss. Both, the mainstream media and social media have gone bonkers over this news. The US Department of Justice (DOJ) has evidence that Gautam Adani and other personnel have bribed some officials from Solar Energy Corporation of India (SECI) to get favourable contracts for setting up solar power plants.
Since any person or entity from the US is not directly involved in the transaction, the case is not of bribery. The US DOJ has got involved because Adani Green Energy relies a lot on foreign investments (including US investors) and the DOJ alleges that Adani Green Energy has misrepresented facts with respect to their corporate governance to attract investors and get better valuations.
Some people have written off Adani while others are giving it a political angle as a US deep state propaganda against India. I do not wish to be at either ends but I do understand where both are coming from. The former group is writing off owing to Adani’s reputation of time and again getting into the headlines for wrong reasons while the latter group is giving it a political angle because the US Pentagon audit has revealed that they cannot trace USD 840 BILLION from their accounts.
We will wait and watch on how this unfolds.
Sorry #3: Some wise words of caution from the Chief Economic Advisor Nageswaran (click here)
V Anantha Nageswaran, the Chief Economic Advisor to the Government of India has cautioned the Indian exporting companies that while the weaker Rupee is an advantage as it can render their products cheaper and can boost exports, the exporters cannot be complacent as this trend is not going to last forever and what will matter in the long run are the quality, productivity and innovation of the products and services.
In such turbulent times, it has become extremely important to make sure your money is invested at the right places. You can read our article on Portfolio Reshuffling (click here) to get professional insights into managing your wealth.