15 December 2010

Motilal Oswal 15th Wealth Creation Study:: UU Investing

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MOTILAL OSWAL 15TH WEALTH CREATION STUDY

UU Investing: Creating wealth from the unknown and unknowable

-          Metals/Mining sector has dominated this year’s Wealth Creation Study.
·         The sector has displaced Oil & Gas as the biggest wealth creator.
·         4 out of top 10 fastest wealth creators are from this sector.
·         The sector has even made a beginning into the consistent wealth creating category.

-          Low payback ratio (Market cap/Next 5 years’ profits) remains the most reliable valuation indicator of fastest wealth creation.

-          UU situations offer asymmetric payoffs; these can be exploited only by investors with complementary skills, unusual judgement, and no fear of MMQ (Monday Morning Quarterback) risk.

-          TTS – Ten Trillion Dollar Savings through 2020 – will throw up many UU investing opportunities in Indian financial services.

-          India’s high linear economic growth will create exponential business situations – the perfect backdrop for UU investing.


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