hobbit

if you buy X% stake at 1 billion mkt cap and then buy another 0.1X% stake at 2 billion mkt cap , accounting principles wont let u hold the entire investment at 2 bn mktcap until and unless there is another independent deal in the market that confirms ur valuation. if u trust fairfax management its a no brainer that the investment is already worth1.2 billion with a much higher intrinsic value.

The book value stated by fairfax india is a bit misleading in lieu of the additional 10% BIAL stake bought by Ffxind for 200 million earlier this year. This additional stake values the entire bangalore airport at 2bn which should put ffxind stake at 1.2 bn instead of 600 million being reported currently .

selling at less than book value ..

You're welcome. @DeepSouth can you understand you're a masochist from my point of view? Anyway, let's just all vote with our wallets and things will work out at some point :) I honestly don't understand your point of view. I'd say the empirical end result of your policy desires leads to decade long depressions and wild and violent swings in inflation and deflation. It's not masochism to desire an entity with the power to smooth out economic cycles and encourage growth. The federal reserve is one of the few things the US government gets mostly right. If you're terrified of your savings being withered away by low single digit inflation but don't want principal risk for your savings buy TIPS. I own bitcoin because I think the risk/reward is fair from here even though I think most bullish arguments for bitcoin are very stupid. The policy of the last ~120 years led to huge bubbles and (long! 20+ years at times) subsequent recesions while an organic market won't have recesions lasting longer than a few years. I concider loving that ewuivalent with loving pain. On top of that an organic market rewards its participants more fairly in the sense that good decisions lead to financial reward while the current system rewards having the right contacts at the policy maker for the most part. even though I disagree with you completely, I think its beyond the point right now since bitcoin core has a zero chance of being a viable currency due to technical limitations. On top of that bitcoin's inability to replace gold gives it a total value of 0. Good luck

People seizing power and covertly stealing from the general population? The economy is best left untouched by 'policy makers'. They'll only fuck things up like they have shown throughout history. Policy makers are messed up in their own ways but there is a very sound economic rationale behind why fiat is better than bitcoin. No there's not. There is Keynesian dogma and brainwashing which a child understands is bullshit. People never spend their money if it increases in purchasing power? How naive must you be to buy that ... But believe what you wish. This falls under freedom of religion for me. To the people not understanding why it's an improvement over gold I simply refer to this blogpost from 2012 http://moneyandstate.com/bitcoin-libertarian-introduction-used-care/ the same Keynesian dogma prevented a depression like the one experienced post 1929....i would rather believe in reality than conspiracy theories.

Not sure I understand how it has "no game changing benefits" as compared to gold when you can transact in bitcoin literally without an intermediary. Exactly. Say you want to transfer $1B worth of gold to someone on the other side of the planet. This would be much easier, faster, and cheaper to do in Bitcoin. Say you want to leave the country and take your entire net worth with you. You could literally memorize 12 english words and take a Billion dollars with you in your head. you can transact in gold without intermediaries. a transaction in bitcoin will take more than 24 hours to complete and given the volatility in price it will never be used to transfer large chunks of value. if you are actually moving to a new country, no one is stopping you from taking ur money with you.

People seizing power and covertly stealing from the general population? The economy is best left untouched by 'policy makers'. They'll only fuck things up like they have shown throughout history. Policy makers are messed up in their own ways but there is a very sound economic rationale behind why fiat is better than bitcoin.

The concept of blockchain is a breakthrough. There was a reason gold standard was abandoned . Fiat money provides more flexibility for the policy makers to arrest an economic downturn. 2008-09 crash was less worse than 1929 because of ability to print money. Having a fixed supply of bitcoin as a currency is shortsighted from an economic prospective . Technical challenges of bitcoin core has rendered it useless as a currency. Even though bitcoin was envisioned as a currency , the failure of it as a currency has lead people to highlighting bitcoin as a replacement of gold. Its not going to happen because it offers no game changing benefits over gold and you need to be a game changer to dislodge something which already works well ( Gold). It is not anonymous unless you have some degree of technical sophistication which majority of people do not have. For majority of people cash/gold is far more anonymous than bitcoin . This does not mean all cryptocurrencies will fail. Bitcoin will though.

Do you have any supporting maths for this claim? ;) Yes, Bangalore Airport publishes an annual report with all the numbers.. I have read a couple ..they are way ahead of their targets put out in 2007-08 period. You can also find some of these numbers in Fairfax India annual meeting presentation..you can find it here http://www.fairfaxindia.ca/news/Events/default.aspx slide 31

the potential for bangalore airport is massive..that alone should be worth the current market cap 5 years down the line

indexing does not scale well at all. it is a solution only if a relatively small number of people do it. Once it gets adopted en masse , it creates bubbles .

http://www.fairfaxindia.ca/news/press-releases/press-release-details/2017/Fairfax-India-Holdings-Corporation-Intention-to-Make-a-Normal-Course-Issuer-Bid-for-Subordinate-Voting-Shares/default.aspx

http://economictimes.indiatimes.com/markets/stocks/news/100-bagger-return-in-6-years-lucknow-lads-prove-their-mettle-on-d-street/articleshow/59910808.cms these guys created screener.in

https://www.screener.in/ http://www.valuepickr.com/

Actually their true BV is north of 16.50 ..in the most recent transaction they paid 200 million for another 10% stake of BIAL but on their books they value BIAL at 1.1 Bn

http://s1.q4cdn.com/293822657/files/doc_presentations/2017/Fairfax-India-Annual-Meeting-4.20.2017.pdf ?

if you take 2Bn valuation for BIAL and the gains from IIFL.BV is around 16.50