Stay Clear of Flashy Businessmen in India

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Those who are looking for ways to multiply their money by investing this in businesses are advised to stay away from colorful businessmen – at least that’s how it’s supposed to be when you plan to invest in India. This is what The Unusual Billionaires of Saurabh Mukherjea reveals. Saurabh Mukherjea is the chief executive of institutional equities at Ambit Capital. The Unusual Billionaires is a collection of case studies on the Indian companies that consistently showed promising growth in the past decade. It indicates that people could be better off investing their money in businesses that are run by quiet introverts.

How did the companies in the book get screened? The author picked out those that were able to deliver an annual revenue growth of at least 10% in combination with a return of capital of not less than 15% in the last decade. Financial companies on the other hand were subject to different measures. In the end, the results showed that the companies that stood out were the innovators or those who thought ahead of their time.

In comparison, businesses that thrived on political connections reportedly suffered the most – their shares have been halved from 2010 to 2015 at the time when the general stock market trend for India was a gain of 50%. Their businesses suffered when Narendra Modi became the prime minister. It seems that Modi is against dirty dealings. The companies with well-connected insiders will have to drop previous tactics to make way for innovative ideas if they want to stay afloat.

And what about the “unusual billionaires” that were mentioned in the book? Turns out that they are individuals who do not fancy the flamboyant life. On the contrary, they are often described as “boring” in fact. It only goes to show that a book indeed should never be judged by its cover.