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Watsa on opportunties in India


wisdom
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Gio,

 

India has 600 mil people below 28 years of age while the rest of the world is aging. The other 50% have been providing for the 600 mil - educating and raising the 600 mil.

 

If the 600 mil can be educated and trained over the next 20 years - it will unleash a lot of potential. Which inturn will lead to large increases in spending and growth.

 

India today is the mirror image of the developed world - the consumer does not have much debt, insurance and it is a young country (demographics) with a lot of red tape. If these barriers are removed, India would grow rapidly over the next 20 years.

 

edit: at 7% growth over 20 years - the per capita income in India will be around USD 8,000 which is where consumption reaches the levels we are used to in NA or Europe.

 

Cheers.

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Gio,

 

India has 600 mil people below 28 years of age while the rest of the world is aging. The other 50% have been providing for the 600 mil - educating and raising the 600 mil.

 

If the 600 mil can be educated and trained over the next 20 years - it will unleash a lot of potential. Which inturn will lead to large increases in spending and growth.

 

India today is the mirror image of the developed world - the consumer does not have much debt, insurance and it is a young country (demographics) with a lot of red tape. If these barriers are removed, India would grow rapidly over the next 20 years.

 

edit: at 7% growth over 20 years - the per capita income in India will be around USD 8,000 which is where consumption reaches the levels we are used to in NA or Europe.

 

Cheers.

 

The range of opportunities is simply amazing! ;)

 

Cheers,

 

Gio

 

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http://www.bloomberg.com/news/2014-11-27/watsa-s-fairfax-to-sell-shares-in-fund-for-investments-in-india.html?cmpid=yhoo

 

FFH is setting up a new company for the first time to invest in India. FFH and other investors are putting up $500 mil. I recall reading somewhere that FFH had planned to put in $300 mil.

 

Not sure about the fee mcliu.

 

I had thought I read an interview or earnings call commentary with Watsa where he said they had $1 bilion earmarked for India. If this fund is only 500M, then I imagine we'll  be seeing an acquisition announced soon.

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Zach,

 

I had thought I read an interview or earnings call commentary with Watsa where he said they had $1 bilion earmarked for India. If this fund is only 500M, then I imagine we'll  be seeing an acquisition announced soon.

 

The $300m is Fairfax, $200m is "cornerstone" investors (Fido, Markel...), and there is an offering for retail (who will have to pay the 5% placement fee).  If Watsa's $1B is right, that implies $500m from retail holders.

 

This looks to basically be a Canadian closed end fund, right...

 

Feel free to correct if anyone thinks I read it wrong.

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