Road to the Future

The road to the future was contemplated to be written in the back drop of the major investments our government is planning to incur to spearhead a one of its kind project in the world. The minister for Roads & Highways has set a huge task, a task to put India in the fore front of International Road Infrastructure. A project that can transform the way we live and travel. The Program plans to create 50,000 Km of highways across the country in the next 5 years.

I would like to share what it means in terms of change. The entire industry that gains from this is gearing to meet business. It entails a spending of 100,000 crores every year. And the entire gamut if industry like the cement, project concreters, real estate developers, entertainment, food & hospitality are all having a stake in this project. The economic potential is for all, jobs, entrepreneurs, direct & indirect employment and for investors like us. As I discussed in the previous post, there is an imminent consumerism wave breaking out with per capita income exceeding USD 1000.

I am excited about the times ahead. Knowledge about it, is what we need to invest wisely. The US economy has seen such unprecedented growth in the 1860 and many entrepreneurs who stood those waves have made it.

We are going to witness in the next few years a similar growth and let us not miss this opportunity. There are a dozen of companies listed in the exchanges which are going to make it Big in this wave. Let us have Patience and develop Knowledge, two skills required to create wealth. If there is one show stopper, that could be the mounting levels of debt which is currently at 80% of GDP. Unfortunately the current budget has done little to address fiscal deficit, which is widening with every passing year.

Every investor in the market fears a correction. The years 2009 has seen a sharp rise in stock prices, and a correction this year should be expected. I know of wise investors who are holding on to their cash. I am in cash majorly and invested in 20% and I have set my eyes on some valuable companies that are not available cheap as of now. But if you can find some wonderful long term opportunities trading at attractive valuations even in a volatile market like this, nothing should stop you to go ahead. Keep your War Chest filled with cash and very soon we are going to have the opportunities come our way.

Happy Investing.

Naresh