Adani stocks are getting no love from India’s money managers Money managers in India have continued to trim holdings of Adani Group’s stocks, suggesting concerns about governance remain even as the worst of the rout seems to have passed. Investments by local equity mutual funds in the group accounted for only 0.9% of the industry’s $182 billion in assets at the end of March, according to data compiled by Bloomberg. That’s down from nearly 2% as of Dec. 31. The embattled conglomerate at one point saw $153 billion erased from its market value in the selloff following the release of Hindenburg Research’s scathing report on Jan. 24. The group has vehemently denied allegations made by the short-seller, and has since trimmed down capital spending for growth and said that its founders have paid back share-backed loans. Local managers’ continued caution is at odds with the optimism shown by GQG Partners’ star investor Rajiv Jain, who spent nearly $2 billion to scoop up stakes in four Adani stocks in early March. The move acted as a catalyst for a rebound of more than $30 billion in the group’s market value.
2. Warren Buffett talked about his business partner Charlie Munger in his letter. He said they both think alike but what it takes Warren Buffett a page to explain, Charlie Munger sums up in a sentence. Charlie Munger’s version, moreover, is always more clearly reasoned.
The lesson for investors: “I will add to Charlie’s list a rule of my own: Find a very smart high-grade partner – preferably slightly older than you – and then listen very carefully to what he says,” Warren Buffett said.
3. Warren Buffett emphasised that his long-time business partner Charlie Munger and he are business pickers, not stock pickers. He further said that efficient markets exist only in textbooks.
“We own publicly-traded stocks based on our expectations about their long-term business performance, not because we view them as vehicles for adroit purchases and sales. That point is crucial: Charlie and I are not stock-pickers; we are business pickers,” Warren Buffett said.