Archives for June 2016
Ayaz Motiwala is the founder of Amala Emerging Asia Fund which is focused on investing in quality businesses primarily in India, Indonesia, Thailand and Hong Kong. He has been investing professionally for 20 years of which the last nine years have been out of Hong Kong.
Prior to the current role, Ayaz worked at Samena Capital, a special situations fund based in Hong Kong. He has worked for four years independently managing the India and South Asia investment portfolio of Highbridge Asia Opportunities Fund in Hong Kong. He has also worked in other funds/ security houses viz. New Vernon Capital LLC, Birla Sunlife Asset Management, Motilal Oswal Securities and Ask Raymond James. Ayaz is an MBA in finance from Institute for Technology and Management, Mumbai and Bachelor of Commerce from Mumbai University.
Safal Niveshak (SN): Could you tell us a little about your background, how you got interested in investing, how have you evolved as an investor and what’s your broad investment philosophy? Has your investment policy changed much through the years as your capital has grown?
[Read more…] about InvestorInsights: Ayaz Motiwala
“Many happy returns of the day Anshul!” One of my old friend wished me on WhatsApp. Dropping a message on WhatsApp is more convenient these days than calling up. It was still better than the standard birthday wishes you get on Facebook, which you know have come as a result of constant pestering from Facebook notifications – “Hey! It’s Anshul’s birthday today. Write something on his wall.”
“Thanks man. I am glad you remember.” I replied. I still didn’t believe that he actually remembered my birthday. May be Facebook sent him a customized birthday wish to be forwarded to me from WhatsApp. After all Facebook now owns WhatsApp.
“You know what? You just wasted another premium of your life insurance!” He joked.
“Well, that’s an interesting way to look at it. But I am glad that it was wasted. After all life is perishable and can end at any moment – insured or uninsured.” I told him with a smiley.
But that got me thinking about insurance (especially term insurance) and life. On one hand, every additional year I live on, the insurance premium seems to go waste. But on the other, as I grow older, since my life insurance premium remains fixed, I get more and more value for each rupee spent on insurance. How?
For anything that’s perishable, including human life, every additional day in its life translates into a shorter additional life expectancy. Isn’t it?
A book about Halo Effect and eight other business delusions that deceive managers. It attempts to answer the question why is it so hard to understand the high performance of an organization or individual.
Rajiv Bajaj, MD of Bajaj auto, said this in one of his talks –
I joined the company [Bajaj Auto] twenty years back. In my college I was trained to think ‘Just in Time’ because it was supposed to be one solution for all the problems. And then somebody said, Just in Time is not enough. They said there must be Kaizen, World class manufacturing, Toyota production system, Kawasaki system, automation and robotics. Then they said you must also know CAD, CAM, simultaneous engineering, re-engineering, six-sigma, TQM, and you must wear six hats, follow seven habits, look for blue oceans, be a bit of a maverick and indulge in management by walking around. Every time I learnt something I found myself back at the starting point. There was always the new book on the shelf, and there was always the new consultant on the seminar circuit. And these guys would do anything to keep themselves in demand and keep all of us confused. So I decided to ignore all of these.
Rajiv Bajaj turned around Bajaj Auto from a loss making company in the year 2000 to the most profitable auto company in world and it’s pretty clear from his talk that he didn’t do it by listening to those management experts and celebrity CEOs who claim to have the next new thing.
[Read more…] about BookWorm: The Halo Effect
A leading Indian brokerage – let’s not take names here – is in the limelight these days for being consistent in revising its Sensex targets at the drop of a hat. In fact, it has been consistent in such revisions for almost the past two years. But the real beauty of all this lies in the fact that experts from this brokerage have no qualms about ditching their existing Sensex target to adopt the new one.
Just a month ago, its Head of Research appeared on CNBC and advised people to “take the market’s exit opportunity with both hands,” as he predicted “the Sensex is likely to touch 22,000 mark by the end of this year (March 2017).” He reiterated this target on 31st May.
Then, just a week later, he did a complete u-turn and raised the Sensex target to 29,500, again by the end of March 2017. On a lighter note, I suspect some superstition in this new target because unlike the earlier rounded-off targets of 36,000 (January 2015), 34,000 (March 2015), 32,000 (May 2015), 28,000 (August 2015), and 22,000 (March 2016), the new target is 29,500 (midway between 29,000 and 30,000). 😉