Last Evening interacted with Ramesh Damani ….glad to have caught up with him after awhile…..he presented historical evidence of Global Bull Runs where Indices have zoomed 5x and 6 x in as quick time as 5 years and the biggest of all being 21 x by Nikkei…. says we have commenced one in India from Sensex 17500 levels in August 2013
Rolling on his thought I asked him that at 28000 currently we are at only 0.6x two years down! so would he hazard a guess where we would be in a few years and would that then make even the passive Index Investing a good if not great Wealth Creation Approach for the next few years
In lighter vein he stated that he had said 50000! at a Phuket get together organised by Tata Mutual Fund and yes Index Investing would be wise too
I would say ~ Well look at it this way ! From 17500 to 28000 in two years is @ 25% CAGR on the Sensex and if we keep this up for the next three years we would have crossed 50000 by 2018…..Our Sensex has returned 17% CAGR since inception over 30 years ago though it’s performance has been lower and erratic in lesser periods of 5 and 10 years.
Oh by the way Ramesh asserts that Direct Equity first and Index Funds next is the way to go and not Equity Schemes of Mutual Funds….am completely in sync with him on this
His pet theme is Pharmaceuticals & the Digital Story & those who support E-Commerce Boom like Logistics Players….does not like PSU Banks even at Book or below…gives a thumbs up to Technology & FMCG going forward
Met Deenaben & Asitbhai Mehta too….she’s a pioneering lady in Indian Broking and Asitbhai & her are a well respected couple in the field ….owe them at least a great dinner now for Deenaben proclaiming among 50 present including Pradip Shah(IndAsia),Dilip Piramal(VIP) and Y Trivedi(Reliance) that I should not be the one asking questions but instead be up there answering them on Wealth Creation through Indian Equities !
Deenaben you’re too sweet ! thank you for the lovely compliment ! hope you did not see me blush !
🙂 Her take on the Sensex going forward is quite straightforward and humorous ! “See BJP has 282 Lok Sabha Seats and multiply by 1000 we are at 28200 levels…NDA Coalition has 330 seats so I’m looking now at 33000!”….can’t argue with such funda logic !
😀 Definitely owe Deenaben & Asitbhai a lovely dinner and before Sensex reaches 33000 !
Oh! almost forgot ! as we were leaving,a relatively young gentleman walks up to me and says ” Sir,I’m a great fan of your blog.It’s one of the best !”…told him to interact through responses on blogposts as I could not recollect the name he gave as being one who has responded before